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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Because that’s when the fun part is over.
A lot of people who make a living out of creating startup companies do it because they enjoy the challenge of starting a compan. Opening a business with the intention of keeping it is kind of a lifelong project as well and a lot of people who do startups and house flips like that they have projects that will be finished so they can move on to new ones.
Conversely there are investors who hate starting up companies and only want to invest in companies that have some time under their belt.
These two groups go really well together.
Additionally depending on the industry the startup enjoys the benefit of getting out of that business before the overhead goes up due to maintenance costs.
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