Brett Goldstein, formerly with Google’s M&A team, has assembled a list of “21 things founders should know about getting acquired.”
Brett’s full post is an insightful read for founders.
Here are seven points that resonated with my experiences:
#2. “Every time your valuation increases, the number of potential acquirers decreases.”
#3. “Deals initiated through the corp dev team usually have a <1% success rate. It’s more effective to engage directly with product teams.”
#4. “Build relationships with product teams years in advance of a potential acquisition.”
#5: “Your largest customers and partners often emerge as the most promising potential acquirers.”
#10: “In discussions with acquirers, it’s crucial to demonstrate how you can significantly boost their product or business, potentially with design and code examples.”
#16. “Your liquidation preferences will largely determine your financial outcome…”
#19. “Make sure you’re clean legally and financially. Investing in good bookkeeping early on can save you tons of time and prevent your deal [from getting] derailed.”