Follow us on  

Three Steps in Startup Acquisition

If you thought that COVID 19 brought the world to a standstill, think again. According to a White & Case report, mergers and acquisition activity in India recorded 598 deals valued at $112.8 billion during 2021, which is a new record. This year, they say, will not be any different. 

These days, mergers and Acquisitions are the norms, especially in the startup ecosystem! In simple terms, an acquisition involves buying a company that has gained traction in the market by another company with similar interests. However, there are cases where startups acquire new startups too. So, what are the steps in an acquisition? Let’s take a look.

Step 1 is always about having the right plan

Why are you thinking about buying a new company? It could be for finding new markets, getting advanced technology, geographical growth, or increasing the Geographic growth strategy and market share. This makes defining the plan an essential component. 

Step 2 Research and build an Acquisition Team

Once you have a plan in place, you need to find which startup will suit your requirements. This needs research. Once you have identified what you need, you build a team of negotiators who can make the deal.

Step 3 Signing on the dotted line

Once you have everything in place, make the deal, negotiate the terms, check the paperwork, and sign the contract. 

Reference: India M&A sets new records in 2021 https://mergers.whitecase.com/highlights/india-ma-sets-new-records-in-2021