HACKER Q&A
📣 single-use

How should we respond to private equity calls?


We run a moderately successful ($1.1m gross TTM; growing ~45%) bootstrapped SaaS. Our “team” is two people. We have marginal operating costs.

We like the product and our customers, and are inclined to continue doing what we’re doing. We’re also open to selling, taking some money off the table, and semi-retiring.

A couple of potential acquirers have contacted us. While these haven’t worked out, it made sense to talk. They were familiar with our product and operate in the same space.

Lately, we’re getting calls from private equity groups and investment banks. Their messages feel boilerplate (brief introduction + request for a phone call).

We’re happy to talk to potential buyers. That said, these calls feel like vague prospecting calls. My gut says they’re indiscriminately cold-calling startups like ours en masse.

Am I making a mistake by (politely) passing on these calls?

P.S., I’m posting this under a throwaway account as I’d prefer to remain anonymous.


  👤 brezelgoring Accepted Answer ✓
>Am I making a mistake by (politely) passing on these calls?

Yes and no. While I can't make any promises, it is generally a good idea to follow and grow these 'leads' as much as you can. You can always disagree later and leave it there. Closing the door early might be OK if you're short on time or willpower.


👤 meetingthrower
I'm in PE. These are mass prospecting calls. If you are considering an exit, fine to talk to them to vet if they feel right for you. If you are not, they are timewasters. (I say this as a guy who makes these calls.)

👤 sergiotapia
Be careful you're not brain-raped by potential copetitors.