Entrepreneurship: Great Companies Are Bought Not Sold

Here at Profit we love dishing out words of wisdom on entrepreneurship, especially when those words come from fellow entrepreneurs with ‘been there, done that’ experience. Such is the case with Charles Moldow who has successfully sold companies to Microsoft, Yahoo and is currently the general partner at Foundation Capital.

Charles Moldow recently sat down for a one-on-one interview with Vator.tv’s Bambi Francisco wherein he gives some great advice for entrepreneurs.

One of the key points Charles makes is that great companies are bought, not sold. I think we inherently know this, but it is a good reminder that if you are pounding the pavement looking to sell your company, chances are you’re going to have a tough time getting the valuation you want. Conversely, if you build a great business and position it so that a potential acquirer ‘wants’ your business, that is a far more powerful position to be negotiating from.

Charles also talks about the importance of persistence and thinking outside the box. For example, he once put an employee on a flight to Japan with absolutely no reason for going to Japan other than to get that employee to sit next to a potential client for 12 hours.

For more of Moldow’s sage advice, watch the full interview included below.

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