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Thoughts on incumbents from a startup's perspective (cdixon.posterous.com)
12 points by taylorwc on Oct 8, 2010 | hide | past | favorite | 1 comment



Very awesome list.

I'd also add a few others:

- Generally, larger companies can't move as quickly as you can so don't be too scared when they say "We can just have a team do this in the next few years." Politics, headcount, a bulky codebase and sheer inertia make it really hard for them to quickly copy you unless they were already headed that way before you popped up.

- When speaking w/ potential acquirees understand that they see dozens of companies a month. They are in no rush and can 'pass on the deal this time' all day long. Assume its not going to happen and never jeopardize your business for talks.

- There is never a 'final offer'. If they want you and talks fall through, they'll be back in a few months.

- Always keep it professional even if talks get heated. Any possibility of a deal can be destroyed if you are a dick. No matter how badly they want you, it raises serious questions about whether the acquisition is the right fit. I have heard of talks breaking down right at signing b/c the CEO didn't like the vibe from the startup CEO.

- Cliche, I know, but the best strategy for being acquired is to not need to be acquired.




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