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Instead of hoping your startup will be acquired, maybe you should be acquiring

2017-08-05 12:35:51 | Legal Services


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 Section 8 company registration, Nidhi company registration, IEC registration.


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