Young entrepreneurs who are however
considering acquisition as an exit strategy thus need to understand as to
why the companies are bought in order to best the position themselves. The
purpose of this article is to make the reader aware of the fact as to how
should one be acquiring a startup instead of hoping that his startup will be
acquired .
1. Never count yourself out
Regardless of as to how small
the startup, one must however consider changing the perspective from
acquisition target in to however using acquisitions in order to
grow. This may however be considered as a dramatic change of mindset for
the founders but it can also thus introduce rapidly developing the capabilities
which they did not already have.
One must not make the mistake of
thinking that acquisitions are however something that the “big” companies
do. Acquisitions can also be considered as a viable growth option for a company
thus at an early stage, as well.
2. Cover all the bases
A decision which is however
this important must thus be thoroughly evaluated from the multiple
perspectives. One’s typical list which is of “pros vs. cons’’ won’t
however suffice.
Founders should also take the time
in order to understand the intricacies of a deal. There are however
multiple considerations, from a financing perspective in thus regards to
asset vs. stock purchase, to an employment perspective which is in
regards to staffing the contracts and also the benefits packages. One must
shell out some cash which is either for a lawyer or also a professional
insight, if that’s what it should thus be done. One must make sure that he
walks into an acquisition with the eyes which are wide-open. One doesnt
really dont want any surprises.
3. Find the perfect match
One must always make sure
from the perspectives of revenue, design, technology, marketing and also
public relations that one can however incorporate an existing brand
with traction which is thus equal to yours. If the brand which one is
acquiring however isn’t a natural fit, one must move on. There’s
also no sense however forcing an acquisition if it really doesn’t make sense
for the long-term growth and also goals of the company.
4. Make sure you have market
appeal
As a young entrepreneur, one’s
product must however have legs. Not only should the customers however
clamor for it, it should thus also be considered as a disruptive force in the
market. Acquirers thus also want to give money only when they thus know
that they'll also see an attractive return. While it as the paying
customers who will however be the judge of the value and also the
potential for the startup, its thus the acquirer who will however
take notice.
5. Make it essential
Meeting the consumers needs may
however make one the next big deal. When one is essential to a consumer
as a lifestyle or either also provide a product or a service that however
offers real, bottom-line value to a business, the company will however be needed,
and thus not just wanted. Acquirers will thus also find this attractive, as
gaining the customer loyalty and also maintaining a long-term
relationships will thus also help in order to generate income on a
regular basis.
6. Streamline adoption
One’ s solution, product or the
service should thus be as easy as possible in order to consume, integrate
and thus also use. The greatest startups of the last decade have thus all
spent considerable time on however focusing on eliminating the barriers.
One must thus not make the rookie mistake of however over promising and
also under-delivering. The easier one’s product is to incorporate
into the customer as a life, the more likely it will however
happen. And that thus also has a big impact on both the bottom line
and the investors.
7. Hire and retain the best
talent
A main reason as to why the
large companies acquire startups is thus for talent. Good startups
however usually start with a great talent but thus a few do a good
job of however consistently raising the bar for their staff or either thinning
out those who thus had made sense for a startup but thus dont work well
for however a maturing business. Its also thus critical in order to
prepare the company culture in order to support optimization and
also expansion. By doing so, one will however position yourself as an
innovative company which is trying to stay ahead of the curve, and one will
thus attract more talent looking in order to join these types of
settings. It’s thus a self-fulfilling prophecy and also one that will
however boost acquirers confidence.
8. Â Control on the bottom
line.
Efficiency matters. The more
efficient and the more concentrated one’s expenses are, the more credibility
one will however have with the investors and the acquirers. While working
lean is key, another key component is thus the amount one has at
the end of every year in order to invest in the companies future. Money
which is however spent on corporate entertainment or either a posh
office space is money which is thus not spent trying to get ahead of the
competitors. Maturity is key thus to the overall financial health of the
business -- one must thus make sure that one’s team is making smart, strategic
decisions with every expense. By keeping the costs low, acquirers will
thus have a clear view of the priorities, and they will thus have more
confidence in the ability in order to manage the company to its
ultimate goal -- financial and also marketplace success.
When one is however making good money
off a customer base that can thus grow and also with a product or service
that can thus scale, companies are thus going to start coming out of the
woodwork in order to acquire the startup.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.
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