6 Tips For Positioning Your Startup For Possible Acquisition

Business Blog

Businesses are merging with or acquiring other businesses at a rapid pace these days. Many startups are intimately aware of this. If you started your business with the hopes of finding an acquirer in the future, then there are a few things you can do to make your business more attractive.

1. Be Unique

Your product or service is unique. Even if there are others like it, competitors simply cannot do what you do. This should be your mindset. It has to be your mindset. After all, if you don't believe it, then potential buyers won't believe it. If you let a potential buyer think at any moment that they can do what you do, then they will use their resources to do just that.

2. Foster Talent

Potential buyers look for more than just a product or a service, they look for talent. The more talent you can bring to your team, the more desirable your business becomes. Of course, if your business consists of only you, then you need to make sure that you show your talent to the utmost.

Positioning yourself as a talent and an expert takes work, but you can do it. In many cases, it's not even the business that an acquirer wants. It's the mind behind the business that these companies are after.

3. Be Lean

If your exit strategy is a buyout, then make sure that potential buyers are getting your core business. When you position your business for acquisition, you should not be attempting to expand your offerings or move in different directions. If that's your goal, then you're not really ready to exit.

Divest yourself of all extraneous endeavors. Streamline your core business as much as you possibly can. Acquirers want a lean, smooth operation. That doesn't mean that you shouldn't try to grow your business. It just means that you should focus on specialization.

4. Show and Prove

Have a sample integration plan that shows how your business can benefit the buyer's business. Integrating your business into another's framework is not easy. Showing examples of how it can be done and proving that it's workable will go a long way towards making your business even more attractive to potential buyers. You can do that on paper or with merger and acquisition software.

5. Focus on Your Business, Not its Acquisition

Potential buyers love a startup with momentum. Don't stop or slow down when you think it's time to sell. Continue offering your service. Continue giving your clients and customers your unique product. Don't turn down your quality. Keep your business moving. This shows that you're in it for keeps. It eliminates the very thought of desperation, which many buyers don't like. A growing business is far more attractive than a stagnant one.

6. Consult

Business moves should not happen without professional consultation. Even if you're doing all the right things and attract potential buyers, you still need to know the ins and outs of acquisition. It's not all cut and dry. And unless you've been through the process before, there are definitely things you won't know or consider. 


18 December 2014

Creating A Successful Business

Nothing is more difficult than starting up your own business. Over the years, I have started and sold twelve different businesses, and some have been a lot more profitable than others. However, the mistakes that I have made over the years have taught me a lot about what it means to run a profitable, successful business. I hope that as you read through the articles on my website, you will learn more about how to operate a successful company, so that you stay in the black. Remember that running a business isn't always easy, but if you make wise decisions and stay focused, you can build a business that you can be proud of.