In 2004 when I was CEO of MessageRite we received a very fair offer to be acquired by FrontBridge Technologies. This wasn’t the first acquisition offer we had received, but it was the first offer that boldly proclaimed “we see you as strategic to our goals.” I wrestled with the idea and did what I often do. I called my mentor Bill Kendall.

Before I tell you what Bill said, I need to provide some context. From late 2003 through mid 2004 my primary focus was on raising capital. In MessageRite I picked a capital hungry company to found - email archiving as a service. I started the company when my own personal net worth was insufficient to carry the company to profitability. During that 6-month capital raising period I received term sheets from two VC firms you wouldn’t recognize. They were bottom tier firms who offered incredibly unfair terms. I turned them down.

Back to the offer to be acquired.

Bill’s advice was as follows “Kevin, you are one of the most objective people I’ve ever known and you would be the first to admit that you’ve struggled to raise capital. If FrontBridge’s offer exceeds what you think the company is worth then you should consider doing the deal. There are two reasons for my recommendation. First, it will be perceived as a successful exit, making you all the easier to back next time you start a company. Second, it will provide the capital to personally fund the next company if you decide you don’t want to work with VCs. If MessageRite were your second company I’d have different advice, but in that it’s your first I think you should accept the offer.”

I did the deal and Bill was right. Find wise advisors and learn to heed their advice.