May 6, 2013

Why a technology acquisition does not mean the end

When the time comes for an entrepreneur to sell his or her technology company, it is an opportunity to reach new customers and for the business to grow. It does not mean that the owner has failed, or did not dream big enough. On the contrary, perhaps the company head wants to create more ideas, or has decided that it is finally time to retire after being in the corporate world for decades.

Regardless, agreeing on a technology merger or acquisition is the beginning of new business. It is important to remember that every founder, company and financial market is different, according to a Forbes contribution piece. The news source discussed an opinion article on PandoDaily, where author Jake Lodwick said that "every acquisition is a failure."

However, Forbes explained why this is not true, and that starting and running companies takes experience, judgment and intuition. It is difficult to boil it down to one set of rules, and every entrepreneur has a chance to benefit from an acquisition if the right opportunity presents itself.

"I applaud anyone who take the initiative to start something," read the Forbes piece. "I'm even more impressed by folks who take a company far enough that someone wants to buy it, and I'm even more impressed by teams who build large independent companies." 

Especially when the right care is taken, and a thorough plan is created with the assistance of merger and acquisition consulting, entrepreneurs can find great success with selling their technology company. Often, the business being acquired will be able to help the other firm increase its technical reach and bring in more customers. The two organizations benefit one another, allowing room for all-around success.