article thumbnail

When Does a Private-to-Private Merger Make Sense?

Both Sides of the Table

I’m pretty on record as saying I don’t think many private-to-private tech mergers make sense. And that’s when a private-to-private merger works. They are often done from a position of weakness. Something in both companies isn’t working, which is why they come together. But of course there are always exceptions.

Merger 296
article thumbnail

Beware of Premature Merge Elation

Both Sides of the Table

I can save tons of development time and I think I can buy it for all equity. I lived through the era of companies doing premature mergers. That’s why immature teams spend so much time on mergers. A merger is not the panacea. There is no such thing a “merger of equals&#. Me: “Zero dilution.

Merger 276
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

9 Success Principles To Propel Your Next New Venture

Startup Professionals Musings

Develop a product line and add alternate channels. Prioritize mergers and acquisitions early. Most entrepreneurs consider mergers and acquisitions as a later follow-on, unless they are in real trouble, or if they have already saturated their base market.

Merger 386
article thumbnail

Should You Build Out Features Or Create A New Product?

YoungUpstarts

If you were looking for a lawyer to represent your company for a multimillion-dollar merger, what kind of lawyer would you want? Most of us would want to hire the most experienced, cutthroat lawyer specializing in multimillion-dollar mergers. The same rule applies to product and app development. A DUI lawyer? Didn’t think so.

article thumbnail

6 Ways To Improve Your Odds Of New Business Success

Startup Professionals Musings

I once met with an entrepreneur who had developed a new algae strain to cure world hunger and make him rich. Mergers and acquisitions also require new skills. Pivot early, as required, to tune your features and marketing to meet the market and technical realities. Even non-profits need income to run a business.

article thumbnail

Maintaining Company Protection During A Merger

YoungUpstarts

When a company is faced with a merger or acquisition situation, things can get a little hectic. With some hints and tips from a reputable resource such as Merger Technology , you can embrace the upcoming changes and work towards making the most of it, both for yourself and those you work with. Don’t Hate, Collaborate.

Merger 100
article thumbnail

6 Strategies For Startup Exit That Investors Accept

Startup Professionals Musings

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Think of it as a succession plan, to keep growing what you have started.