Successful Acquistions For Startups
Following a very successful 2016, what lies in store for M&A in 2017? Yahoo Finance looks at what it takes for a startup to achieve an acquisition. They explain that M&A is not magic and that selling a business involves a lot of hard work. They examine the process involved and provide suggestions on what founders can do to ensure success.
Key advice includes great preparation – a sound analysis of the firm’s vision, products & services, competition, team, financials, marketing, KPI’s etc; followed by defining a strategy and engaging the right investment bankers to find and manage buyers.
They also cover due diligence and negotiations to give a fairly rounded view of what’s involved from start to finish.
Selling a business is not easy, and it needs a lot of effort. In most cases, it is more complex that raising funds for your company, although the steps are very similar. It is a one-time chance and should be prepared and executed at its best! A process which lasts between four to nine months requires a highly concentrated and well steered collaboration between sellers, buyers, advisors, former investors, and other parties. During this time and even before, the sellers/founders have to focus on both – the operational business and the sale process – and this requires extra effort by founders and often key employees…. read more.