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Ask HN: Receiving Offers for My Companies
I'm running a private software company in a very niche ( and localized) space, with just a handful of staff. We achieve at most arithmetic growth at our revenue. I don't foresee that anyone would be interested in acquiring my company precisely because it's very niche and localized and doesn't have the kind of hockey stick growth that a buyer would salivate at.
But then, I received an email out of the blue today, reproduce here ( with names redacted):
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We are part of a large publicly traded company with a market cap of ~USDXX B+ that operates on a ‘hold forever’ principle. My understanding is that your company serves as a niche solution in the software space. I’m reaching out to express our interest towards your business and also introduce ourselves
So far, we have acquired hundreds of businesses that operate autonomously across the world with a presence in numerous software verticals. We operate these businesses in a decentralized manner which means that they are still being run and operated by their original management teams and employees where it makes sense for them, with our backing, capital and expertise. At this point in time, I am hoping to get in touch with you and possibly start discussing any exit plans, whenever the timing is right for you, now or down the line in a few years.
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I don't quite understand why people would want to acquire my company, especially if they know about the nicheness of our space ( and judging from the email, they do). When it comes to M&A, shouldn’t they focus on companies with great growth prospects ( like social media in the early days), or the ones in their adjacent fields that they can contribute meaningful expertise and opportunities to (like Autodesk acquisition of PlanGrid)?
Could this be a scam?
What do you think? Anyone had such an experience?