Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • PM Modi in Manipur
  • Charlie Kirk killer
  • Sushila Karki
  • IND vs PAK
  • India-US ties
  • New human organ
  • Downton Abbey: The Grand Finale Movie Review
fp-logo
Want to be the next Little Eye Labs? Here's how to position yourself for acquisition
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Business
  • Startups
  • Want to be the next Little Eye Labs? Here's how to position yourself for acquisition

Want to be the next Little Eye Labs? Here's how to position yourself for acquisition

Pranbihanga Borpuzari • February 25, 2014, 12:47:37 IST
Whatsapp Facebook Twitter

When one talks of the evolution of a startup, getting acquired figures pretty prominently in the scheme of things. There are instances aplenty of startups being bought by large organizations. And most of them have had a positive outcome for the founding members. But how should a startup prepare and position itself for a possible acquisition? While thereis no magic formula, some aspects should be taken care of if the deal is to be sealed.

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
Want to be the next Little Eye Labs? Here's how to position yourself for acquisition

When one talks of the evolution of a startup, getting acquired figures pretty prominently in the scheme of things. There are instances aplenty of startups being bought by large organizations. And most of them have had a positive outcome for the founding members. But how should a startup prepare and position itself for a possible acquisition? While thereis no magic formula, some aspects should be taken care of if the deal is to be sealed.

STORY CONTINUES BELOW THIS AD

• Focus on the team and product
The primary focus of every business should be to build a product or service that is excellent, solves a problem, makes money or has the potential to make money. Getting acquired should never be the sole objective. The only thing that an entrepreneur should focus on is to get the best product or service and find ways to ensure consumers use it. The rest will follow.

More from Startups
Pune-based startup, Guruji on Demand, to launch online funeral management service in times of social distancing Pune-based startup, Guruji on Demand, to launch online funeral management service in times of social distancing NASSCOM teams up with IoT, AI startups to provide low-cost solutions to combat COVID-19 NASSCOM teams up with IoT, AI startups to provide low-cost solutions to combat COVID-19

When Facebook recently acquired Tel Aviv-based mobile analytics company, Onavo, it primarily did that for its team. The reported buyout price was up to $200 million, which made Onavo’s office the first for Facebook in Israel. It also ensured that all 30 employees of the company would join Facebook’s team there.

Acqui-hires are a reality in the tech world where big corporations pay a premium to acquire the team at a smaller, more frugal startup. If you are in the tech domain, your technology development team will be noticed if it does great work.

What works for a startup is that teams tend to be small and if the product does well, the team automatically comes into focus.

![Fast_Fact_380](https://images.firstpost.com/wp-content/uploads/2014/02/Fast_Fact_380.jpg)

• Market your company
It is important to promote your company. You may have a great product or service and a great
team, but everything will come to naught if you cannot sell it.

STORY CONTINUES BELOW THIS AD

Marketing is vital not just for sales but also to be noticed by both customers and potential acquirers alike.

While it is true that below-the-radar firms sometimes surprise us with plump deals, it is still not the norm.

It is equally important to reach out to local and national media and get some public relations for the brand.

One of the most inexpensive ways to promote and market your company and the brand is to have
a good website that reflects the kind of work you do.

Another route to take is to be active on social media. It is a very easy way to market, brand and promote your company. Since the internet has no boundaries, social media allows you to reach out to audience far beyond the shores of a country.

Good social media traction can go a long way in building a strong case for an acquisition.

• Build a reputation or patents
A good reputation is a must. From good consumer service to quality of products and services, a company’s reputation hinges on what it can do for its customers. It also serves an organization well to have a clean image among its peers. A good environmental reputation is crucial to garner carbon credits. Also, bear in mind that no acquirer likes to get his hands dirty.

STORY CONTINUES BELOW THIS AD

In the midst of many controversies, mostly involving the big boys of technology, patents have become an important factor when it comes to acquisitions.

Patents showcase the technological and intellectual prowess of a startup and may be a game changer for a bigger corporate.

In the tech world especially, it pays to have some patents to your credit that can get larger companies excited by you.

• Find a partner or a rival
For a startup, getting a partner on board makes good business sense. A partnership maybe inked to get access to technology, market or improve credibility amongst others.

However, it is often seen that in a partnership which lasts for a period of time, the dominant partner ends up acquiring the startup.

When inking a partnership, it is vital to keep in mind if an acquisition may be on the cards in the near future.

Big companies do not like competition. Unlike them, startups are nimble, think on their feet and can bring in disruptive practices.

STORY CONTINUES BELOW THIS AD

In such cases, it is easier for larger companies to acquire such startups to keep the market conditions favorable for them.

A great example of this is of Amazon when it acquired Stanza in 2009. Stanza was a rival eBook reader to Amazon’s Kindle and operated on the Apple platform. Amazon acquired it for a hefty amount to kill the competition.

For a large organization, that plans to expand to a new country or geography, the easier route to take would be to acquire a relevant and successful startup in that country. Amazon did this when it acquired Joyo.com, a Chinese e-commerce website to gain insights and a foothold into the lucrative Chinese market.

This article first appeared in Entrepreneur India magazine.

End of Article
Latest News
Find us on YouTube
Subscribe
End of Article

Top Stories

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV