The decision to sell a company, such as Waze, to a larger entity like Google can be a daunting one. However, the founder of Waze, Uri Levine, believes that there are only right decisions or no decisions at all. He emphasizes that when you make a decision, you don’t know what would have happened if you had chosen a different path. Despite the uncertainty, he acknowledges that Waze is certainly worth more today than it was 11 years ago when it was initially sold for $1.15 billion.
Levine believes that viewing the sale of a company as simply “selling your company” is the wrong approach. Instead, it should be seen as someone making you an offer that is too good to refuse. In order to attract such offers, the focus should be on building a great company that others would be interested in. This involves having multiple options available, such as continuing to run the company, raising capital, or becoming profitable.
When evaluating offers, Levine suggests considering if the offer is a life-changing event for both you and your team. Additionally, it’s important to think about whether this opportunity is a once in a lifetime experience or if there will be more journeys in the future. Finally, considering how you will feel the day after the deal is closed is crucial, as you may now be part of a larger organization with different priorities.
The negotiation process is also key when considering an offer. Levine advises saying no to deals that don’t align with your goals in order to secure the deal that you desire. Creating alternatives and engaging in conversations with other potential acquirers can help in strengthening your negotiation position and potentially attract more offers down the line.
The emotional toll of selling a company is significant, as it involves a mix of feelings related to the journey, success, life-changing event, future plans, relationships, and team dynamics. Levine describes the process as an emotional roller coaster, with a multitude of thoughts crossing your mind and the pressure of making a quick decision looming large.
For Levine, the day after selling Waze marked the beginning of new journeys as he continued to build additional startups as part of his entrepreneurship journey. Despite the emotional roller coaster and uncertainties that come with selling a company, Levine emphasizes the importance of focusing on building a great company and evaluating offers carefully to ensure the best outcome for yourself and your team.
