July 21, 2015

For tech acquisitions, entrepreneurs can think locally

You don't need to be in a tech epicenter to get involved in M&A activity.

When speculating for a merger or acquisition, it's likely that companies with high national profiles will catch your attention. The most buzzed-about mergers and acquisitions in tech happen in hotbeds like New York and Silicon Valley. However, it's likely that there are potential deal makers in your geographic region that are worth checking out, whether it's the hot new startup down the block or the established digital media company in your small city. 

Most of all, you don't need to be in a tech epicenter to get involved in M&A activity. Cities like Chicago, Boston and Austin have all made booming tech markets on a smaller, more localized scale. If you're within range of a smaller hub then it might make sense to explore options there, rather than pitching to buyers across the country. 

Network effectively. It's important to make connections with tech leaders in your area, whether you have a collaboration or a full-fledged M&A deal in mind. Attending local and regional conferences to share your work can raise your visibility and provide opportunities to meet potential investors or partners. 

Be open to boutique acquisitions. On this blog, we've discussed the trend in boutique acquisitions. While Apple or Google might not be interested in purchasing your startup, the locally headquartered sportswear or food manufacturing company may be seeking a way to diversify its investments. Making yourself valuable to an unlikely buyer can help broaden your acquisition options. 

With the guidance of an experienced M&A advisor, your startup can pursue, negotiate and sign a lucrative deal that helps your business reach its growth objectives. Contact us today to learn more about the benefit of working with an advisor.