January 8, 2014

How to make your startup appear attractive for a merger

If you create a successful startup, chances are a larger company will one day seek to acquire your organization. Often, this can be a good thing. By joining a larger company, many startups find that they still have the freedom to do the work that they set out to do, without having to worry so much about financial resources.

Of course, much of this depends on the quality of the merger agreement that gets negotiated. If you want businesses to show interest in your startup and be willing to follow through, you need to do your best to present your company in the best light possible.

A recent article on Mashable explains how to go about doing this.

"You want to elicit interest and excitement, but without going over the top and turning people off with too much cockiness, desperation and long-winded descriptions," the article read.

First, it is important to focus on the problem that your startup is solving, rather than your own credentials. Businesses can always find qualified people to do work for them, but they cannot always come up with unique ideas. Avoid using too much technical jargon, and give them a straightforward explanation.

This is not to say that the pitch you've been rehearsing for months will work in every situation. sometimes you will meet potential clients in casual situations, at which time a different approach is called for. Be sure you understand your business well enough to discuss it at length without sounding like you are reading off a note card.

Finally, listen to what potential buyers have to say. Maybe they don't want to buy your startup right now, but they may have valuable advice that will lead you to a business acquisition in the future.

When that happens be sure to prepare yourself. A mergers and acquisitions firm can help you negotiate a great deal that will put your company on solid footing for the future.