Should You Take This Investment/Acquisition Offer?

intermediate

Framework to evaluate investment terms or acquisition offers objectively.

When to use this:

  • Considering venture capital investment
  • Evaluating acquisition offer
  • Deciding between multiple term sheets
~15 min8 questions

Framework Details

Category

Financial Decisions

Difficulty

intermediate

Estimated Time

~15 minutes

When to Use This

  • Considering venture capital investment
  • Evaluating acquisition offer
  • Deciding between multiple term sheets
  • Unsure if terms are fair
  • Team is split on decision

Warning Signs

  • They're rushing you to sign quickly
  • They won't connect you with other founders/companies
  • Terms keep changing during diligence
  • Your advisors are all saying "don't do it"
  • You're rationalizing away red flags
  • They're evasive about their track record