How To Get Your Startup Acquired: A Step by Step Guide

#News(Startup) [ via IoTGroup ]

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How To Get Your Startup Acquired: A Step by Step Guide
Step 1: Are You a Threat?
Step 2: Build Relationships With Potential Acquirers
Step 3: Get To Work
Step 4: Protect Your Interests
Step 5: Let Them Make the Offer
Step 6: Cash Is King
Step 7: Document the Future
Step 8: Don’t Let It Drag Out
Step 9: Are You Ready?

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How To Get Your Startup Acquired: A Step by Step Guide Joe Procopio
I’ve been acquired six times, the last two were when I was at the top of the company.
I’ve also consulted several startups through the acquisition process.
Step 1: Are You a Threat?
While a startup shouldn’t be focused on acquisition, you should you know who your acquirers are.
There’s no magic formula to make your company attractive to these acquirers.
Your startup doesn’t necessarily need a ton of revenue to get acquired, but the more revenue it’s generating, especially recurring revenue, the higher the valuation of the company and the better the offer.
Ask yourself if your startup is a threat.
Step 2: Build Relationships With Potential Acquirers
While you’re working with potential acquirers, communicating with them, or even just sending them press releases, always keep your intellectual property under wraps and your trade secrets secret.
If they don’t come right out and say that they’re interested in acquiring your startup, they may hint at finding some project to work on together.
Step 5: Let Them Make the Offer
Blunt: “I realize it makes strategic sense for you to acquire my company.”
The least attractive acquisition is when the startup’s team is absorbed into the acquirer with little or no additional compensation, what’s known as an acqui-hire.
So before the deal is closed, you and the acquirer will need to come to an agreement as to what’s going to happen with your product and your team in the future.
You’ll also need to know what your company’s current leadership’s role is in that future.
How will your startup be folded into the acquirer?
I’ve heard several horror stories, like more than a dozen, from startups that put everything they had into an acquisition project or even just an acquisition promise, only to watch it fall apart at the last minute.
The acquirer is not serious until an offer is made, so don’t plan for an acquisition until it’s serious

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