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1/ Most successful start-ups get approached for potential M&A earlier in their existence. So if you're founder, should you engage in M&A conversations? And when's the right moment?
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2/ I believe that there's no value in having a M&A discussion just to test the waters & collect data points. It's distracting & you might end up being drawn into a full out sales process that you never intended to enter in the 1st place (corp dev pros know how you to draw you in)
3/ So when's the right time to think about M&A?
2 scenarios stand out:
- You run out of ideas how to grow your company (start-ups are defined by growth & will quickly become less valuable w/o strong growth)
- The founders are tired and / or don't get along
2 scenarios stand out:
- You run out of ideas how to grow your company (start-ups are defined by growth & will quickly become less valuable w/o strong growth)
- The founders are tired and / or don't get along
4/ Selling your company is a really tough decision - so don't get pulled into a M&A process you didn't want.
Your start-up might often seem very fragile relative to the big corporations that are trying to buy you but there is more going your way that you might realize.
Your start-up might often seem very fragile relative to the big corporations that are trying to buy you but there is more going your way that you might realize.
