WHY BIG COMPANIES BUY STARTUPS
ad dollars ) away from the likes of YouTube .
So acquisitions play key parts in major companies ’ evolution : the business strategy allows these businesses to expand and acquire growth quickly , fill a need and become more competitive with others in their industries .
How to Attract Potential Buyers Although there are plenty of people out there who have perfected building businesses to sell them , it isn ’ t a business skill that can be picked up overnight . And to be honest , you probably shouldn ’ t build businesses just to sell them : being passionate and engaged in the industry and caring about your product or service should be a business owner ’ s number one goal .
Acquisitions offer corporations a new way to seek growth , and expand into new regions where the valuation of a company may be less than it would be on the home front .
If you think your business offers something to the likes of the Telstras and Facebooks of the world , however , there are certain ways you can groom the business to make sure it is attractive to interested parties . There ’ s no new advice here — if you ’ re interested in starting a company , these are all steps you should follow regardless of whether you are planning on selling your business or not .
Having the right team is incredibly important , for any business of any size , new or old . It might be difficult for new businesses to be able to afford top talent from the get go , but employees should be a major focus of founding discussions , especially the management team . Potential investors look closest at the higher ups as the top factors when they are interested in getting involved with a new business .
Keeping everything documented from the beginning — yes , we mean day one — is also a good rule of thumb . What happens when you ’ re incredibly innovative startup is acquired for billions of dollars , and suddenly there ’ s a discrepancy over how shares will be split ? Nothing
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