If you want to potentially get acquired — start now. Because it often really, quietly takes years.
What do I mean? Well for sure, acquisitions themselves technically often happen very quickly. The acquiring CEO reaches out, they meet up and shake hands over the weekend, a term sheet is signed on Monday. It does happen that way all the time. From handshake to term sheet.
But before that happens, there are often years of watching, learning, getting to know each other. Either directly or from a distance.
My first start-up was acquired for $50m after 12.5 months. And the deal happened over a weekend. But we’d known each other, and competed, even longer than the start-up existed. For years.
The second time, when Adobe acquired us, the deal again happened over a week or two. But we’ll known our deal lead for 5 years. Kept them updated. Went and met in person several times a year. And by email more often.
The other day on the SaaStr podcast HubSpot chair and co-founder Brian Halligan said he kept potential acquires updated by email consistently. Nurtured them. They never took an offer, or got one they really wanted, but he maintained that optionality.
A BigCo buying a start-up is risky. It’s measured risk, but risky. The more you know the company you are buying, and its leaders, the less risky it is.
And timing matters — and not just your timing. Theirs. There are years when BigCos feel more bullish about acquisitions (2021). And years they are less bullish (2024). Stock prices go up and down. And importantly, executives and executive priorities change over time.
If you want to even just keep options open to be acquired … nurture those leads. Over years, in fact.
A bit more here:
