206: How to Sell Your Hardware Product Business

Product Startup · 15 Dec 2023 · 22m

What this episode covers

Dan Shea, Managing Director at Objective Capital Partners, explains how hardware founders can maximize valuation for an eventual exit by focusing on product innovation, customer-centric design, and building a culture of continuous improvement. He emphasizes that large corporations are increasingly acquiring startups to access this innovation, making it critical for early-stage companies to think about their long-term value proposition from day one. Shea details the M&A process, noting that buyers look for tangible assets like product portfolios, IP, and diverse customer bases, and warns that the average age of entrepreneurs selling their businesses is getting younger.

Most relevant to

early-stage companies and companies scaling up

Topics

Mentioned

Companies: Objective Capital Partners, Mako Design
Also: Harvard Business Review

Other shows on the same ground, closest first.

The Hardware Entrepreneur16 Jan 2019 · 41m
#066 - How to apply lean startup principles to hardware, with Ash Maurya of Leanstack, USA
Ash Maurya, founder of Leanstack, explains how Lean Startup principles apply to hardware by prioritizing problem validation over solution building, using Tesla and Apple as key examples of companies that manage high-risk physical product development through staged rollouts and software-defined infrastructure. He details the three stages of development—Problem-Solution Fit, Product-Market Fit, and Growth—and introduces his Customer Forces Canvas and Jobs To Be Done framework to help innovators understand the psychological triggers behind customer purchases. Maurya emphasizes that hardware startups can compete with software companies by focusing on the speed of learning and using tactics like small batch production and over-the-air updates to iterate quickly.
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The Manufacturing Executive29 Sept 2026 · 42m
Always Be Exiting: How Manufacturers Build Value Years Before a Sale w/ Eric Wiklendt
Eric Wiklendt, Managing Director at Speyside Equity, explains his two-phase 'portco value creation system' for middle-market manufacturing businesses: fixing margins through operational improvement (Phase 1) and then building top-line growth (Phase 2). He details how Speyside evaluates scalability, mitigates customer concentration risk, and structures management teams to ensure a business is sellable, arguing that owners should operate with the mindset of 'always be exiting' to maximize value. The discussion covers specific tools like sales force effectiveness frameworks and the importance of starting exit planning 24 months before a liquidity event.
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The Hardware Entrepreneur24 Oct 2018 · 18m
#063 - Your (hardware) product is not your product - think in terms of business models, with your host Balint Horvath, Switzerland
Host Balint Horvath argues that hardware entrepreneurs must prioritize business models over product perfection, warning against the 'product trap' where founders fall in love with their solution before validating the problem. He illustrates this with Audi's Le Mans victory through efficiency constraints and Tesla's staged rollout to mitigate range anxiety risks. Horvath outlines key business models for hardware startups, including Hardware-as-a-Service, hardware-enabled services, and the consumables model, citing examples like Fitbit, Nespresso, and the failed startup Pebble.
Validation & product-market fit Pricing, margins & unit economics
1 chapters
The Hardware Entrepreneur10 May 2017 · 33m
#025 - How to benefit for your startup from the one and only hardware accelerator of Southern California, with Shaun Arora of Make in LA, USA
Shaun Arora, co-founder and Managing Director of Make in LA, discusses his hardware accelerator program which supports early-stage startups building physical products. He details the 4-month intensive curriculum, which includes office space, maker space access, and mentorship, focusing on helping companies pivot from consumer to B2B models and secure Series A funding. Arora highlights successful graduates like Ring Doorbell and a B Corp energy startup, while sharing his own mistakes regarding cohort selection and time management. He emphasizes the importance of cultural anthropology in product design and the value of measuring progress to improve outcomes.
Crowdfunding & preorders Validation & product-market fit
10 chapters
The Hardware Entrepreneur25 Apr 2018 · 14m
#053 - Which one to choose - b2b or b2c for hardware startups, with Balint Horvath, your host, Switzerland
Balint Horvath, host of The Hardware Entrepreneur, explains his decision to join the hardware startup IRSweep, a company producing high-end IR spectrometers, to gain firsthand experience in the B2B sector. He contrasts the complex, multi-stakeholder sales cycles of B2B models with the faster, emotional decision-making of B2C, using examples like DJI and Square. Horvath argues that B2B hardware is increasingly favored by investors because it creates 'must-have' products with higher barriers to entry and better margins than commoditized consumer goods.
Starting a product company Direct-to-consumer & e-commerce
1 chapters

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206: How to Sell Your Hardware Product Business

What this episode covers

Most relevant to

Topics

Mentioned

Related episodes from other shows

#066 - How to apply lean startup principles to hardware, with Ash Maurya of Leanstack, USA

Always Be Exiting: How Manufacturers Build Value Years Before a Sale w/ Eric Wiklendt

#063 - Your (hardware) product is not your product - think in terms of business models, with your host Balint Horvath, Switzerland

#025 - How to benefit for your startup from the one and only hardware accelerator of Southern California, with Shaun Arora of Make in LA, USA

#053 - Which one to choose - b2b or b2c for hardware startups, with Balint Horvath, your host, Switzerland