Startups are a tricky ordeal to start with, and sometimes, it takes a little more than just effort or a good idea to reach the top. In fact, it takes a lot more than those two variables! The ultimate goal of every entrepreneur is to get their company recognised and listed, to turn their dreams into concrete reality, to be at the pinnacle of success. But, situations seldom happen how we plan them in our heads. Along the journey, other well-established companies might become interested in your business model and might even want to acquire your company.
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Companies getting acquired have become more of a trend than an exception since many notable Indian companies have undergone this process. Some of these giants that got acquired include companies like Junglee.com, redBus, Jigsee, and ZipDial, among others.
An entrepreneur has to take a variety of factors under consideration before coming to a decision, and it’s far from a cakewalk. Here, we have listed some of the common reasons why startups want to get acquired.
It is hard for any entrepreneur to let their brain child go to waste, so they find an honorable way out, and that is by getting acquired. Entrepreneurs who wish to keep their business model intact and keep their company running, averting the various issues they are faced with, generally go in for this process. So, without having to demolish the company that they had built so hard, getting acquired helps them retain the earlier model, enjoy the benefits, all while staying under the control of a bigger company.
As a consequence of acquisition, the company that gets acquired, along with all the employees, gets exposed to many new influential people aside from a host of newer companies and institutions. Acquisition will inevitably lead to newer opportunities and opening up of networks which only leads to more business.
Every entrepreneur has a set of visions and goals that they want to achieve. Sometimes, for them to realise their goals, acquisition becomes a necessity. This is because they might not be able to reap the projected success in the preordained framework or working model of their company. The process of acquisition might induce the necessary changes. Moreover, the established infrastructure might just help smaller companies realise the same.
Startups, after a particular point, might become less productive. Hence, getting acquired by a bigger company might just be the spark that sets the efficiency meter running. A new infrastructure coupled with new heads will bring about that increase in efficiency.
Whatever be the reason, the process of getting acquired can be a very hectic one where your company, your skills or even the team is essentially what you are selling. Ensure you make an informed decision in which both the parties will be able to reap an equal amount of profit!