People say the end of the year is a terrible time to raise money or sell a company, because “everyone’s only thinking about the holidays” and “monied people are off skiing in Aspen.”
Except, my previous company Smart Bear was sold on Dec 20, 2007. And we completed our Series C round here at WP Engine on Dec 23, 2013. And no fewer then three other companies I was previously an investor in also raised a round that closed in December of 2013.
Although it’s stressful and consumes all the hours of the day and night, I like closing at the end of the year. Why? For the same reasons that people give about why it’s a terrible idea.
Because everyone with money — and the lawyers! — want to get away for the holidays, without an unfinished deal dragging into Christmas, everyone is highly motivated to get the deal done. Lawyers who might otherwise run up bills with trivial bickering become reasonable and agreeable when it might eat into a holiday get-away.
It’s a forcing function.