Getting acquired by a bigger industry player is the end-game of so many startups.
And hey, why not? Acquisition not only represents a hefty payday for you and your colleagues, but also a sign that your business and its ideas are valuable within your space.
That said, grabbing the attention of the bigger fish in your industry is easier said than done when the startup world is more cutthroat and competitive than ever. Also bear in mind that there are tons of seemingly minor details that could make-or-break a potential acquisition that many business owners don’t even think about.
If you want to get realistically get acquired and want the process to go as smoothly as possible, consider the following eight tips as a solid starting point. Whether you’re already talking to companies or just want to put yourself out in the open, any combination of these best practices is fair game.
Effectively communicate your company data
These days, business are expected to be transparent about numbers like revenue, customer data, sales and so on.
However, there’s a big difference between publishing reports and sharing sensitive due diligence data and other information that’s best left under lock-and-key, so to speak. When talking with potential investors or companies who might acquire you, ensure that such discussions are done in a safe environment and information isn’t given out on a whim.
On a similar note, you need to know what’s already out in the open.
Reality check: companies can be fact-checked in real-time by just about anyone.
Competitors? Check.
Customers? Double-check.
Industry players? Yes, them too.
Consider how your company history is on display for the whole world to see. In addition to your social presence and press history, also consider how sites like Crunchbase and Archive.org can be used to document big moves your company has made. If you’ve dealt with any PR snafus or need to justify something about your past, it’s time to start planning for those questions now.
And there’s nothing wrong with making a mistake or two along the way as long as you’re honest about them and have a justification ready for your critics.
Maintain a positive reputation in your industry
This is a quick tip but a crucial one nonetheless.
With so many businesses pushing a transparency-focused company culture, the behavior of your employees is perhaps under just as much scrutiny as your business at large.
If you’re looking to get acquired, make sure that your employees likewise play a part in keeping up a positive relationship with their industry. Beyond squeaky clean social profiles, they should be advocating for your company and playing an active role in seeing that you’re acquired. Simply being active on social media and attending conferences are both a huge plus.
Build your own buzz
The power of earned media is more notable than ever in an era where companies can essentially break their own news via social media.
Again, it can’t be stressed enough how important it is to build up your industry reputation. Positive press mentions are a way to make it happen, through tactics such as guest posting, providing quotes and sources for publications or contributing to a talk or event.
For example, did you score any big clients recently?
Any gushing reviews of your products you can highlight on a blog?
Did you announce your latest found of funding?
These sorts of milestones in addition to an explicit press strategy can be game-changers. Don’t let these big moments fly under the radar and put them front-and-center in your marketing.
Creating content and showing off your expertise immediately helps you position yourself over competitors while also putting your product on display for investors.
Be proactive but not desperate
The desire to be acquired is something you should be enthusiastic about, but don’t get too excited. After all, trying to “sell off” is one of the surefire signs your company is going under and therefore might be a bad look for potential investors. Instead of screaming out that you’re looking to be bought out, send out signals that emphasize your value in your space.
Because just as you’re trying to get acquired, so are your competitors.
Ask yourself: what exactly are you doing to stand out from the crowd?
Embracing your unique selling proposition not only helps you stand apart from your competition, but also reinforce why you’re worth investing in. Most USPs are associated with universal benefits like saving money or time: what do you do that’s different? If you’re having trouble answering this question, it’s time to do some soul-searching.
Don’t give up on your dreams of being acquired. Instead, put your best foot forward by following the steps above. If nothing else, sticking to these principles ensures that your business is on the path to becoming the sort of industry player you’re looking to have conversations with.