You had a business idea, you’ve poured most of your life savings into realizing it, you’ve had some success, and now you’re ready for the next step.
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You had a business idea, you’ve poured most of your life savings into realizing it, you’ve had some success, and now you’re ready for the next step. Whether it’s access to new business channels, wider distribution, or paying back your investors, getting your startup acquired is a way to take things to the next level. Here are three things to keep in mind, whether you’re in discussions or just thinking about a sale.
See where you can be valuable. It helps to create a product or offer a service you know will fold in well to the model of some of the business world’s top players. Instagram, for example, was a photo and video platform that was eclipsing Facebook until it was acquired by the company now known as Meta in 2012. “To position yourself for an acquisition by one of the top performers, pay close attention to the direction they’re going,” journalist and digital consultant John Boitnott wrote for Inc.com. “You should be considering products or services that might fit in with that.”
Build relationships. It might seem obvious, but acquisition for acquisition’s sake can lead to all-out disaster. Create relationships with companies who might be a good fit, but make sure the rapport is there before discussion turns to a sale. “The best acquisition offers will come to you unsolicited or in the guise of another motive,” entrepreneur Joe Procopio wrote on Medium.com. “The worst offers are those that you solicit. It’s like walking into a car dealership, announcing your love for a certain model, and then asking how much the red one costs.”
Give them a blueprint. If your product hasn’t been launched yet, or if you haven’t made a profit, it can be difficult for potential buyers to see the value in acquiring your company. That’s why it’s your job to sell them, Alejandro Cremades, author of “The Art of Startup Fundraising”, wrote in Forbes. “Lay out a roadmap of where this acquisition can take your company, the products, the integration, and how your foundational assets will create value for an acquirer,” he said.
