I’ve been learning more about start-ups recently and have noticed a lot of them want to be acquired. Why is this? Could they also choose to grow their business?
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I’ve worked in manufacturing for a long time, and have consulted on equipment financing and acquisitions (my good friend worked in both, and I became a resource into manufacturing financing and acquisitions/sales).
From my experience the most common type of company acquisition is based solely on the founder getting to retirement age, and literally having all (or the vast majority) of their net worth tied up in the business. Building the business to sell is their retirement plan.
Remember, most small businesses and startups aren’t those weird tech dudes out in California. It’s regular dudes operating in the $1-$10m revenue arena.
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