You’ve probably heard the phrase, “Most startups are bought, not sold.” right? It's right and also slightly incorrect.
As much as a startup loves to acquire customers, startups also need to find the right acquirer or buyer! It all depends on the stage of the startup seeking an exit.
In 2021 there is a record 119 M&A (Mergers & Acquisitions) deals in India. If you are a business owner you will need an exit strategy or an acquisition strategy at some point in your business. Only 3% of the start-ups successfully graduate from seed.
In 2021, the figure hit $3.8 billion. These are only the disclosed deals; the majority of them are undisclosed and the value may actually be higher.
Is this for every startup?
As you launch your startup, build your team, and close your first sales, an exit is the last thing on your mind. But thinking through, planning for, and working toward an eventual exit is something every entrepreneur needs to do. Determining which exit strategy is best for your company relies heavily on the current state of your startup and your future goals.
One of the most important decisions a founding team can make is when to consider selling the company to a buyer.
Once you take investor money, you’re expected to reach an exit event in order to produce returns for your investors and for your team. There are two main exit options: go public (IPO), sell in an M&A transaction.
The wisdom is that if you create a good enough product, the likes of Google, Cisco, Microsoft, Byjus, Reliance Jio will show up one day with a fat check for you to sign. That’s the dream, right?
The problem is, it’s just that – a dream (for most founders, anyway).
Some startups are designed with a core mindset of "Build to Sell". Some startups design their journey towards "Build to IPO", some towards "Build for a lasting legacy".
While ambitions are great, the reality is very different!
What do you do when you get offers? How do you evaluate them?
What do you do when you have run out of steam in your startup?
What do you do when you decide to exit, as things are downhill?
As a founder, it's your responsibility to be prepared and aware of the right steps and frameworks to enable a great outcome or exit to all stakeholders
- Acquiring Company
Most startups are sold and with great effort. Okay, your startup might be in the tiny percentage to get gobbled up by a large Tech company, but do you really want to play those odds?
Exiting your startup is like a contact sport. You’ve got to throw your weight behind the process and anticipate buyer plays. Getting acquired is then simply a matter of closing the gap between your and the buyer’s expectations.
When + How to Start Thinking About M&A
When? Depending on who you ask, you will get different answers. Consider that it’s never a bad thing to start relationships with business/corporate development contacts who can help add to your customer set and/or future exit. Relationships take a long time to build.
When you don’t need to make a deal, you will have time, options, the ability to compete, or walk away.
The best times to seriously think about M&A is when you face a:
- Business inflection point — have you achieved big milestones?
- Market inflection point — are competitors getting bought up?
- Acquirers are coming to you — you have options and leverage.
Once you identify your goals, prepare for and de-risk the acquisition for the buyer, you’ll receive more offers than a lifetime spent waiting for big tech to knock on the door.
What does it take to exit a business? It pays to take a closer look at how the M&A works. Hard work and perseverance – both of which start before you even list your startup on the market. The more prepared and flexible you are, the bigger your buyer pool, and consequently, the more offers you’ll receive!
We have brought together a great team of Founders & leaders to give you a complete 360-degree perspective and preparation for an eventful M&A Outcome.
From Successful founders who had an exit, Legal firms across US and India who have dealt with several cross-border deals, Taxation experts who have insights on Tax laws applicable in India and in the US for Tech Startups, and Valuation Platform enablers.
The last decade was all about starting up, this decade is about Starting up & Exiting. Exits are an important outcome for all stakeholders in the ecosystem and across ecosystems to strengthen the wheel of life - what goes around comes around!
In this cohort, you will get to interact and network with some amazing Founders & Leaders who have had a successful Exit.
Cross border M&A deals are even more complex than deals that happen within the same country. Due to this challenge, we have brought together some amazing startup friendly Legal, Valuation & Marketplace Teams, across US and India who will share their frameworks and process to help you plan better & be better prepared for an outcome.
10+ amazing founders & leaders from the Industry across the world who will spend quality time with you to craft your exit journey.
Founders who sold to
Cisco, Whafix, Awesome Motive, Livongo
Pier Counsel, Barlow & Willams, Samkhya, Microacquire
What will you accomplish?
M&A Plan: Have a plan in action to begin your M&A journey
Have a plan in action to begin your M&A journey
M&A Mentors: Hear from Mentors & Founders who have had different types of exit
Hear from Mentors & Founders who have had different types of exit
M&A Community: You will forever be part of the M&A community you can turn to when you feel lost or need help
Community: You will forever be part of the M&A community you can turn to when you feel lost or need help
M&A Clarity: You will come out with a better understanding of how M&A works and its nuances
You will come out with a better understanding of how M&A works and its nuances
M&A Valuation: Understand how valuation works that you can defend strongly
Apply to be Invited!
✅ First Come. First Called for Application Review.
✅ We're planning for 15 Startups in the cohort.
👍 Program Kick-off: 10 Jan 2022
📅 Program Duration: 4 Weeks
Would you mind sharing about this Cohort among your connections/ friends?