Tech Startup Toolkit

31 Acquisition: Your financial dream come true

This chapter covers

• What are the pros and cons of acquisition versus IPO?
• How do investors view an exit? It’s all about liquidity and timing.
• What planning should be done well in advance of an acquisition? And how do you execute it?

Sad to say, most startups don’t make it to an exit. Of those that do, most, by a large margin, are acquired. IPOs are few and far between these days. This anecdote is about acquisition. It is important to plan an acquisition from day one and keep it on the front burner as part of your strategy planning. An up-to-date ecosystem map is key to that strategy process. This map shows all potential competitors, partners, vendors, major customers, service providers, and ...