A startup is an outcome of great idea and creativity. But at times a startup entrepreneur sells their startup to any other company due to many reasons. And that selling off and buying process is called as “Acquisition”. Well..!! Startup Acquisition is termed as taking over the custody and ownership of the concerned selling startup company. A startup generally gets acquired by big companies who make use of it a profitable manner. The acquisition process is quite very normal in the corporate world. But when the talk is about startup’s, it is said that startups are usually not sold rather they are bought by big companies on a mutual agreement.
Do you have the idea to let your startup get acquired ? or Do you have any idea to acquire a startup ? In either of the cases, you got to understand some key attributes with respect to the startup acquisition. If you aspire to get your startup acquired by a big company. Then it is important that you bring your startup to a good position.
Sometimes a big company would show interest towards your startup might be due to your product and development, team or idea and creativity. Whatever it is. So, at that point, even if you wish to get acquired then position your startup in such a way that you earn some benefits. All you have to do is :
- Initially, move them to a partnership zone and see to it that both the concerns are mutually benefited.
- Don’t let them monitor you, maintain a line of respect.
- Construct your business in a strong way. Do what you would have done if you had to do things solo.
Doing this, would help you grow your startup stronger and better. And when you are in a better position companies would come and beg you to acquire your startup. This is when you can let startup Acquisition happen to get appropriate benefits.
Guiding Tour: “When” And “When Not” A Startup Should Get Acquired..!!!!!
There are many reasons why a startup lets themselves get acquired by another company. An acquisition is not as easy as “ABC”. It requires good planning and strategy building. A startup can get acquired only if it has some essential values and fortunes in to it. Well..!! A founder would have plenty of reasons like he might wish to retire, he might want to try some other idea, he might not want to expand in the niche in mere future, cash needs, more competition in the specific area, or insufficient working capital and so on. So, whatever might be the case, a founder should plan appropriately to hand the business in the right hands.
Firstly, we will discuss “ When not to sell the startup or business to get acquired” ???
1. Due to competition in the market:
Competition is actually a thing to fear from, but not till is decelerates you completely. Because fighting competitions make a concern stronger and better. So, as along as you are able to survive and fight you should not care about the world outside. Every business is definitely going to be challenged by the competition. So, just make sure that you do not stop accelerating efforts and hard work.
2. Don’t sale if you have a good team and scope to scale:
When you see the scope to scale your idea in the near future, then you should not think of selling your start up because scaling would help you flourish in the business arena. Above all, if you have a good and competent team to fight challenges, then you should definitely frame ways to improvise your startup’s position to yield good results. Try to scale with the help of your team.
3. Since you feel tired and lethargic:
There are numerous successful start-up entrepreneur who gets tired, bored and laid back with the work and the business that they decide to take the offer of startup acquisition. Despite having a good stream of customers, tractions and identity they give up. But should they do this ? Well…!!! Definitely No, they could try to adopt different pathways like infusion of fresh talents and capital into the concern would give a fresh look to the business instead of pitching down to an acquisition.
Therefore, do not get exhausted and worn- out while you are into your business zone. Try to be fresh and energetic.
Secondly, When a startup should actually get acquired ???
Interested in knowing, when you can let your startup get acquired by another business or company ?
1. If you do not have proficient team:
Hiring the right people is very much crucial. Great team builds a great startup, but not all the great and potent individuals build a great and cordial team. It is said that a bad and incompetent team cannot be fixed appropriately thereby this is when you should take a step to let yourself get acquired. Before spoiling the entire broth. A good progress, positive cash flow, and good results everything can go down if the team is not good and proficient.
2. If you feel you are going to fail:
Misfortunes definitely knock at the door before pouncing on you. So, it would be a better opportunity to get that as a chance and let yourself for acquisition before you actually meet failure or run out of money or left with no revenue etc. There are many startups who wait until the end of the picture with the hope of fortune. But act smart and clever and let startup Acquisition happen soon as you sense mess.
3. When you get a good price:
If you are ready to sell and you come across a good company who shows too much desperation in buying your company. Then, it is the right time to make a move. Sell your company to them as their desperation is your merit. Get good deals in turn of selling.
Therefore, if you have built a startup with zeal and enthusiasm then try your best to protect it and survive the challenges. But then, at times when things do not work, letting it go off would be the wisest option one can make. And the money you get through acquisition could be directed in any of the useful segments.