Reflecting on the journey of successfully navigating Avvio through its full lifecycle to a prosperous sale in late 2022

Reflecting on the journey of successfully navigating Avvio through its full lifecycle to a prosperous sale in late 2022, I've come away with several insights that I believe may be valuable to fellow founders in the travel tech space. Here’s a candid share of lessons learned and food for thought for anyone pondering the pivotal decision of when to sell or seek further investment:

As a founder, it’s crucial to introspect on this subject: What's driving your decision to sell? Is it time to let go, or could your vision benefit from further capital injection? The emotional readiness to detach from your business is as important as the strategic reasons for selling.

I highly recommend talking to people who’ve walked this path. The insights from their experiences can be profoundly illuminating. Here’s a piece that resonated with me and might help you too.

Timing is everything. If the story of your business isn’t fully told yet, perhaps wait. Does your product need finetuning? Are your customer engagements strong such as contractual status and low churn? could another 18 months significantly enhance your business's value.

Dive deep into understanding who might buy your business and why. Are you aligned more with a SaaS model or a service orientation? How does this shape the metrics like customer growth, low churn, ARR, and EBITDA that potential buyers will scrutinize?

Ever heard of the ‘Rule of 40’? If not, check out this insightful read from McKinsey on how crucial this metric is in the SaaS space.

Define your competitive advantage clearly. Where do you stand in your market? What makes your business the preferred choice over others and what size is your Total Addressable Market (TAM). Whether you appeal more to a strategic buyer, or a corporate/PE one can drastically change the dynamics of the deal.

The right M&A advisor can transform your exit process. They bring a global reach, deep market insights, and a network that's invaluable. But more than that, they act as a buffer, helping you navigate through the intense and sometimes emotional journey of selling your business.

Choosing the right advisor is critical. Look for someone who’s not just about the numbers but who understands your business’s story and can communicate it compellingly.

Prepare for the deal. From ensuring your financials are immaculate to having a clear, refined pitch, every detail counts in maximizing your business’s value. Understand the dynamics of the negotiation process. Be aware that the people you meet from the buying side may not be the final decision-makers.

In sharing these reflections, I hope to offer not just a guide but also an encouragement to my fellow founders. The road to a successful exit is paved with more than just strategic decisions—it’s about understanding and embracing the journey, with all its ups and downs.