The Exit Playbook: 6 Battle-Tested Rules For Building Startups

From Startup to Sale: How Four Founders Built Companies Worth Buying

On the 23mile Podcast, we sat down with four founders who navigated successful multimillion-dollar exits: Yasen Dimitrov of Intelligence Node, Dan Schiffman of TVision Insights, Dhilon Solanki of Story Locker, and Edwina Sharrock of Birth Beat. Their stories reveal a playbook that goes against almost everything you hear about getting acquired.

Founder Bios

Yasen Dimitrov thought he had it made. His startup Intelligence Node was growing fast, they had a solid product, and potential acquirers were circling. But as he sat across from his tenth potential buyer, a Fortune 500 company called IPG, he realised something that would change everything about how he approached exits.

"If a big acquirer gets stuck on revenue growth for your startup, I would think twice," Yasen now says, reflecting on those gruelling months of negotiations. "They should not be acquiring you for the revenue. They should be acquiring you for the technology and for the know-how of the team."

It took 12 months, five offers, and countless sleepless nights, but Yasen eventually sold Intelligence Node to IPG for $100 million. His journey, along with three other founders who navigated successful exits, reveals a playbook that goes against almost everything you hear about getting acquired.

More Than Just “Life Changing Money 

Edwina Sharrock knew what she wanted before she even started looking for buyers. But it wasn't about becoming rich. It was about peace of mind, and knowing that the business she built will be in the right hands.

"It was the right number for me because I live a full and wonderful life and I don't have to worry about things and it's enough," she explains. Her company Birth Beat had successfully pivoted from a B2C model to B2B software licensing, landing major clients like Salesforce. The business was working, but Edwina had a clear vision of what success meant for her personally.

The breakthrough came through an unexpected source. A university friend who worked at the company that would eventually acquire Birth Beat. Her friend wanted Edwina to just have a conversation with them, but what sealed the deal wasn't the numbers. It was the people.

When Edwina met the CEO of the acquiring company, she felt instant chemistry. "He had this energy that was just felt around the whole office. I liked the culture of the organization and that was what really allowed me to think this could be a good fit." She needed to feel comfortable leaving her "baby" in their hands.

The Counter-Intuitive Path to Exit

Dan Schiffman's exit story breaks every rule in the startup playbook. He targeted a competitive market, exactly what most advisors tell you to avoid. His reasoning was that competition validates demand.

He says, "The reason I was able to exit this business was that there was a lot of competition in this sector”. "If there are no other players, there's a substantial risk that nobody's going to want to buy your business."

Dan's TVision Insights operated in the crowded TV analytics space, but that worked in his favour. Potential acquirers could see proven market demand and understand the value proposition immediately. Further, when the time came to sell, Dan made a crucial decision that many founders resist, getting external help.

"I hired a banker... to help me sell it and we got a great deal," he says. That money helped pay for business school and set him up for his next chapter. Dan got exactly what he wanted: an early exit that funded his MBA at MIT Sloan.

But even with professional help, deals fall through. Dan had an acquisition collapse while he was in business school, forcing him to run his company full-time while attending classes. The experience taught him that resilience, not brilliance, often determines who makes it across the finish line.

The Art of Knowing When to Quit

Dhilon Solanki's CRM company Story Locker seemed like an unlikely acquisition target. But it solved a specific problem for a mobile ordering platform trying to expand their product suite and crack the UK market. The key was understanding what the acquirer actually needed.

"Make sure that from day one... you've got your financials in order. Make sure you know your numbers," Dhilon advises. "If you aren't getting sales, no one will buy your business." The basics matter more than the fancy stuff.

Meanwhile, Edwina was learning a different lesson about focus. Despite launching a profitable new product, she killed it after just three months. Why? She didn't enjoy it. "You just gotta back yourself with, am I actually enjoying this?"

It seems counterintuitive to cut a profitable product line, but staying focused on what you love and do best often creates more value than chasing every opportunity.

It’s Okay to Ask for Help

Looking at Yasen's story again, his 12-year partnership with his co-founder became crucial during the IPG negotiations. Patience, both with each other and throughout the acquisition process, proved essential.

"I cannot recommend this enough," Yasen says about hiring bankers to manage the sale. "They take a lot of the emotion out of the deal." The process was exhausting. Multiple decision-makers at IPG meant endless meetings and revisions. Previous acquisition attempts had fallen through over the years.

But Yasen and his co-founder had built something IPG desperately needed which was the technology to "beef up their commerce offering" in a disrupting advertising industry. IPG wasn't buying Intelligence Node for its current revenue. They were buying the future capabilities and the team that could deliver them.

Want to hear the full stories directly from these founders? Check out the 23mile YouTube channel →

What Actually Matters

These four exits, reveal patterns that most startup advice gets wrong:

Rule #1 - Eyes on the Prize

Before you can sell your company, you need to define what a successful exit looks like for you. For some, it's about the number; for others, it's about the strategic fit. The key is to have a clear goal.

• For Edwina Sharrock, the exit was about securing a life-changing amount of money that offered peace of mind. "It was the right number for me because I live a full and wonderful life and I don't have to worry about things and it's enough".

• For Dan Schiffman, an early exit provided the capital to fund his next chapter. "That money helped pay for business school and put me in a solid spot".

• For Yasen Dimitrov, who sorted through 10 potential acquirers and five offers, the "prize" was finding a home with IPG, a Fortune 500 company that could help his company grow.

Rule #2 - Get the Basics Right

For a startup to be an attractive acquisition target, it must have trappings of a solid business. Before chasing a complex exit, master the fundamentals. Acquirers are looking for real, scalable businesses that solve a clear need.

This means:

• Building something customers want: "Find something the world needs. Find something you like and you're good at doing and make some money... it's that simple," says Sharrock. Her company, Birth Beat, successfully transitioned from a B2C model to a B2B software licensing business, landing major clients like Salesforce.

• Solving a problem for the acquirer: Buyers are often looking to fill a strategic gap. Dhilon Solanki's CRM product helped a mobile ordering platform expand its product suite and crack the UK market. Similarly, IPG acquired Yasen Dimitrov's company to "beef up their commerce offering" in a disrupting advertising industry.

• Knowing your numbers: "Make sure that from day one... you've got your financials in order. Make sure you know your numbers," advises Solanki. If you aren't getting sales, no one will buy your business.

Rule #3 - Use Counter-Intuitive Strategies

LSometimes, the path to a successful exit involves going against conventional wisdom.

• Choose competitive markets: Dan Schiffman argues that competition is a good thing. "The reason I was able to exit this business was that there was a lot of competition in this sector," he explains. A competitive landscape validates the market, signaling to potential buyers that it's a space worth investing in. If there are no other players, "there's a substantial risk that nobody's gonna wanna buy your business".

• Focus on tech, not just revenue: Yasen Dimitrov warns founders not to get bogged down by revenue metrics when talking to large acquirers. "If a big acquirer gets stuck on revenue growth for your startup, I would think twice," he says. "They should not be acquiring you for the revenue. They should be acquiring you for the technology and for the know-how of the team."

• Know when to cut your losses: Edwina Sharrock learned the power of focus after launching a new, profitable product. Despite its success, she cut it after just three months21. Why? It wasn't something she enjoyed. "You just gotta back yourself with, am I actually enjoying this?" Staying in her lane was crucial.

Rule #4 - Remember It's All About People

What makes an acquisition unique is that it isn’t just a financial transaction like a capital injection. It is a marriage of teams, cultures, and relationships.

• Cultural fit is crucial: When Edwina Sharrock met the CEO of the acquiring company, she felt an instant connection. "He had this energy that was just felt around the whole office," she recalls. "I liked the culture of the organisation and that was what really allowed me to think this could be a good fit." She needed to feel comfortable leaving her "baby" in their hands.

• Acquirers are buying your team: As host Kayode points out, "Even though they're buying the business, they're buying you as well". The management team is often expected to stay on for a transition period to ensure a smooth handover and hit earn-out targets.

• Co-founder relationships matter: Yasen Dimitrov, who worked with his co-founder for 12 years, highlights patience as the key ingredient for sustaining that relationship and for successfully negotiating a deal.

Rule #5 - Ask for Help

Exits are incredibly complex, and trying to handle one alone can be a recipe for disaster. Leveraging experts can take emotion out of the deal and lead to a better outcome.

• Both Dan Schiffman and Yasen Dimitrov hired bankers to help them manage their sales process. "I hired a banker... to help me sell it and we got a great deal," says Schiffman. Dimitrov strongly agrees: "I cannot recommend this enough... they take a lot of the emotion out of the deal".

• Sometimes help comes from unexpected places. Edwina Sharrock's life-changing exit came from a conversation with a friend from university who worked at the company that ultimately acquired hers. "She was like, I just think you should talk to them," Sharrock remembers.

Rule #6 - Adopt a Winner's Mindset

Finally, getting a deal over the finish line requires immense mental fortitude. The process is simple, but not easy.

• Be patient: Deals take time. For Yasen Dimitrov, it took a full 12 months from the first meeting to closing the deal, largely due to the number of decision-makers involved.

• Be resilient: Setbacks are inevitable. Previous acquisition approaches for Dimitrov's company had fallen through over the years. Dan Schiffman had a deal fall through while he was in business school, forcing him to run his company full-time while also attending classes at MIT Sloan.

• Back yourself: Ultimately, you must believe in the value of what you've built. As Edwina Sharrock puts it, "You've gotta really back yourself in terms of the value of what you can offer."

Exits don't happen to companies that need them. They happen to companies that deserve them and chase after them.

If you're building a company with an eye toward an exit, these six rules provide a powerful framework for success. By focusing on the fundamentals, embracing smart strategies, and cultivating a resilient mindset, you can build a company that is great in itself but also acquirable.

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