It’s every startup’s dream: getting acquired for a boatload luxury-yacht-load of money. So what’s the secret?
“Why are some companies acquired for eye-popping valuations while very similar ones never attract much interest?” writes Bryce Youngren, general partner at Polaris Venture Partners, in a guest post for Inc. “The difference often comes from smart exit planning.” That involves strategic and proactive planning and networking Youngren argues. Using two examples of Polaris portfolio companies that were recently acquired, Youngren points out that “the CEOs of both of these companies had sought out and developed strong strategic partnerships with their eventual acquirers.”
The best companies are prepared for success before it arrives, and two additional things founders and CEOs can do in advance of receiving an offer is consider and attempt to address any potential acquiring concerns and find a good investment banker and legal advisor. After all, if you are lucky enough to receive an offer from a potential buyer, you’ll want to put yourself in a position to act quickly, Youngren suggests. For more on advice on preparing for an acquisition, read his full article here.
Related Content from OpenView:
In order to ensure a successful exit strategy, you have to know your options. It’s never too early to start planning, and a good first step is reading this post from OpenView. And for more tips on how to proactively architect your company exit, read this post from the OpenView Blog.