How To Get Your Startup Acquired

Image by Ken Teegardin

The majority of startup companies fail within a year or two of launching so many entrepreneurs see having their startup acquired by a larger company as a huge success. In order to get a larger company to buy your startup, you have to make sure they notice you. Here are a few things you can do to get your startup company on the market:

(Curated from Tech.Co)

1. Make Your Startup Noticed

First, you have to market your young business well enough for large companies to take notice. If they don’t know about your startup, they can’t acquire it.

“If you are planning to have it acquired it is important that you market it as much as possible. In that way, you bring it to the attention of companies that could potentially acquire it. Effective marketing will attract many such potential acquirers to your startup. This is advantageous because it allows you to choose the one with the best terms.”

2. Be Good At What You Do

Your startup won’t be desirable unless it has an excellent product or service. You want companies to be interested in you because you are a potential threat to their already established products or services.

“No matter how good your marketing is, it will not amount to much if your startup’s products and services are poor. Potential acquirers often go for startups whose products and services are likely to give them a competitive edge over their rivals.”

3. Work With Many Buyers

You’re more likely to fulfill your vision for your business if you have leverage. Working with several potential buyers simultaneously will give you leverage over the large businesses.

“Buyers usually have more leverage on many terms of the startup acquisition. By keeping negotiations open on many fronts, you strengthen your hand in the negotiations. As potential acquirers compete for your startup, they make their terms better thus allowing you to get the best deal.”

4. Know What You Want

If your startup is going to be acquired by a larger company, make sure you know what you want. Knowing what you want for the future of your startup is will help you determine which buyers are more compatible with your vision.

“Chances are high after your startup has been acquired you will be absorbed into the acquiring company as an employee. If you don’t have a similar vision you will find it extremely difficult working in the new environment. Having a clear vision for your startup allows you to choose companies that share that vision.”

What advice do you have for entrepreneurs allowing their startups to be acquired by large companies?