Why do some start-ups and/or companies want to be acquired as part of their exit strategy?

991 viewsOther

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?

In: Other

25 Answers

Anonymous 0 Comments

Becoming a truly big company is extremely difficult, you would have to compete with tech corporates that can build the same product you have in half the time if they just throw enough money and resources at it, in addition to having lots of connections and a huge amount of salespersons that will sell it.

You simply cannot compete.

So if you get an offer from another company to buy your startup, this may be your best chance at both successfully profiting from the company and also the startup’s best chance at survival.

Now all the people who are invested in it can bank on their investment and do something else with that money (new startup for example)

You are viewing 1 out of 25 answers, click here to view all answers.