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David Cohen: You Have Acquisition Interest, Now What?
- cmer 16y agoVery often, acquirers will ask to have an "exclusive partnership" with you instead of outright acquiring you. SAY NO. Take just want you to take all the risks. If the partnership doesn't work out, you're pretty much out of business because you gave up everything else for that exclusivity.
- rokhayakebe 16y ago10.5) Ask for an insurance. If they end up not buying after your agreement, they should pay you x% if the acquisition price.
- ryanhuff 16y agoInteresting. Is such a request typical?
- rokhayakebe 16y agoI am not sure, but I read it somewhere. I think it would be common for large size acquisition as the company being approached my loose value if the deal dies.
- bdr 16y agoThere's nothing about contacting other potential acquirers. That would seem like a good idea, but I have no experience in this area. What's the wisdom there?
- ojbyrne 16y agoLeaves out the most important thing - Keep building/act like its not going to happen. You get more leverage.
- ScottWhigham 16y agoI don't think he did leave that out actually. In step 5, he says, "Explain that you’re very busy working with customers and improving your product, and that you can’t afford to distract the company without having at least a ballpark understanding of the offer." Did he have to spell it out further? Not to me