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Aquisitions are not about buying ideas or talent. They are about buying decisions. Decisions are some of the most expensive thing a large company can make in
by dugmartin 16y ago
Aquisitions are not about buying ideas or talent. They are about buying decisions. Decisions are some of the most expensive thing a large company can make in terms of time. A large company aquiring a startup is purchasing a set of decisions, both internally and in their customer's mind, that has moved that startup to the point they are at aquisition. If the acquisition is made when the startup is moving into a repeatable business model then the aquiring company can transition the startup into a mature business using the operational and finance expertice that a large company brings. If the startup has not yet found a model then the startup's normal pace of decision making will hit the corporate wall and it will fail.
(I added this comment to the svn comments too)