Startup enterprises fuel our economy with innovative new ideas, products, services and solutions. They serve as the laboratories, think tanks, researchers and developers, and creators of the elusive “next big thing.”
It is no wonder, therefore, that startups often are attractive acquisition targets, providing product and service pipelines to many of the world’s largest transnational corporations and other consolidators. The very nature of the fast-moving world of startup enterprises and their high risk/high reward profile requires that those considering the acquisition of a startup entity carefully assess the startup’s technological feasibility and commercial viability.
To do this, potential acquirers must engage in substantive business, financial and legal due diligence. Appropriate diligence during the acquisition stage may well make the difference between success and failure, and allow the acquirer to achieve the benefit of its bargain in the post-closing implementation stage.
Click to read the full article: Heads Up on Startups: What Acquirers Need to Know Prior to the Purchase