July 30, 2015

When prospective buyers visit your office

One meeting might not make or break your M&A prospects but it can still add value to the negotiating process.

Imagine this scenario: The company you founded has begun negotiations with a larger corporation that has an interest in acquiring your startup. After a series of phone calls and meetings, you determine a date when leadership from the corporation can visit your office to meet your team and see where the innovation happens. This "informal walk-through" will be an illuminating experience where decision makers across the table can witness your corporate culture, expertise and professionalism up close and personal. 

It's a scene that could go comically awry in a movie. Just as showtime nears, your small shop proves it's not ready for primetime. Employees roll into the office late and disheveled, none of the presentation technology works and your well-rehearsed elevator pitch escapes you at the last minute. Mergers and acquisitions are full of moments that seem like defining turning points in the negotiation process, when you can either win over or put off your potential buyer. 

It's important not to place too much emphasis on these moments that seem critical, and to remember that interested companies will view your startup as a complete package. That means looking at its achievements as well as its potential and room for growth. However, you should still approach these big opportunities with adequate preparation. 

With the guidance of an experienced M&A advisor, your tech company can pursue, negotiate and sign a lucrative and satisfying merger or acquisition deal. Contact us today to learn more about how an advisor can help achieve growth objectives in the tech industry.