You are the twenty-eight-year-old founder of a very successful, five-year-old so

Question

You are the twenty-eight-year-old founder of a very successful, five-year-old software company. For the last three years, sales have doubled in each year. Last year’s sales were $75 million. A major high-tech firm wants to buy your company. They will offer cash and will sweeten the offer by allowing you the option of being CEO for at least two years. How much would the firm have to offer you to take this deal? How would you know if it was a fair offer? Would you exercise the option to act as CEO for the two years? If you took the offer, what would be your life plans?

Explanation / Answer

If I were the twenty-eight-year-old founder of a very successful, five-year-old software company and for the last three years, sales have doubled in each year. Last year’s sales were $75 million. A major high-tech firm wants to buy the company. They are offering me cash and are sweetening the offer by giving me the option of being CEO for at least two years. Then I won't take this offer as it is not a fair offer. The company approached for our company because we are highly successful and we have the skills, abilities and knowledgeable people who can take this company much ahead of where it is now. Taking a rash decision for acquisition and getting the CEO position does not satisfy the craving that we are having for our company. No, I would never opt to become CEO fo the next 2 years. Our company has exceptional characteristics which distinguish us from others. I would not take the offer rather I would plan to acquire small companies those who are finding it difficult to sustain in long-run. Our company without funding because of its resources, technologies, project management skills have achieved all success, so I will not ruin it. Rather if the proposed acquisition occurs may be I will lose some of my talented employees. I would continue with my own loyal team.

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