Acquiring a tech company is no easy feat—and I should know! When The Next Web asked me for my best tip, it all came down to money (of course!). Make sure you figure out the true cost of acquisition, and that includes the price of your dream team. You’ll need at least three lawyers, three programmers, and up to ten others just to get off the ground. This can easily take months and cost millions, so make sure you’re financially ready for such a task.
There are usually two reasons an acquisition is even possible: It’s either a hostile takeover or it’s simply cheaper for you to buy another company’s “bones” than build it from scratch. In most cases, it’s only multi-billion dollar people/businesses that can go the hostile takeover route. This leaves you with the “it’s cheaper” option, which happens more often than you think.
When determining the true cost, make sure you consider the overall overhead, how long the takeover will take, and determine a maximum price that you absolutely can’t go over. This isn’t like buying a home, and you really need to stick to it.
Find out more details on acquiring a tech company and whether it’s the right step for you.
