As established companies look to remain competitive and extend their life cycle, acquisition becomes a more viable and attractive strategy.
Not the only one1, but surely the fastest route in a world when time is the most valuable resource.
M&A deals are a boon for startups as well. No exit, no party, as we’re used to saying. While launching a thriving self-supporting business is still the end-goal for any startup, a buyout from a large company can render that problem irrelevant—or at least less urgent. And return the capital to investors, hopefully with a decent multiplier, thus, M&As are a key component of the startup economy.
The M&A market is large and complex and coming to grips with it from a macro point of view requires looking at a very big picture that can be quite intimidating at times. This involves asking some key questions: Are there worldwide trends we can find for startup exits? What are the conditions under which companies sell and buy, and how do they change by region? Who are the top startup acquirers and where do they come from? Which industries are more active? Which technologies and verticals are attracting the interest of buyers? What is the typical profile of a startup that makes it all the way to the exit?
