Why write about M&A tips for tech startups?
I wanted to start posting about M&A tips I’ve learned over 10+ years working in corp dev at top tech companies (e.g., Amazon) and in investment banking to save tech company executives from having to learn certain lessons the hard way!
Tech startup M&A is usually mostly focused on the startup’s technology, talent, growth promise and intangible fit with the acquirer, as opposed to a focus on more traditional business and financial diligence that would be the focus of acquisitions in other industries or of larger targets.
Also, tech startup M&A is usually much less formal than other types of acquisitions, and bringing in formality or intermediaries such as bankers in the wrong way can ruin acquisitions of startups.
Some authors writing about general M&A go deeper on certain aspects of the process, but this blog will seek to be a simple reference for young founders without any M&A experience and for new acquirers.
I learned from great teachers, academic research on M&A and venture capital, and most importantly many good and bad experiences from running deals on my own and want to share those learnings with readers. Many M&A practitioners are overly secretive about their tricks and tactics, but I think that can ultimately harm the goal of both sides being informed about the process and happy with the outcome.
Hopefully this blog is useful to those interested in tech M&A!