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You are the twenty-eight-year-old founder of a very successful, five-year-old software company. For the last three...

You are the twenty-eight-year-old founder of a very successful, five-year-old software company. For the last three years, sales have doubled in each year. Last year’s sales were $75 million. A major high-tech firm wants to buy your company. They will offer cash and will sweeten the offer by allowing you the option of being CEO for at least two years. How much would the firm have to offer you to take this deal? How would you know if it was a fair offer? Would you exercise the option to act as CEO for the two years? If you took the offer, what would be your life plans?

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ANS- First of all i am not willing to sell my business and so i am not going to take any kind of offer being made to acquire my business. But if the firm wants to offer me for the deal than they will have to pay the amount more than what i have raised capital through my investors and according to the company's worth in the market.

To know if the offer was a fair offer it should meet shareholder's expectations and the value should be according to the market price of this type of company.

No, i would not exercise the option to act a s CEO for the two years because it was my company and i was the founder of that company and if i sell it than i would not be involved in any kind of decisions and i would not want to be CEO of that company.

I would not take the offer as of now as i have not made any plans to sell the company as of now.

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