Insights into Value Creation and Exit Trends for Technology Companies
This Edition's Topic
Insights from Corporate Strategic Investors:
How to achieve a successful strategic exit and obtain an optimal valuation.
98% of all tech company exits are done via corporate strategic acquisitions. They also happen fast with the most common age at exit being year 4. With these facts in mind we interviewed corporate development executives that are making acquisitions to uncover advice they would give to tech companies seeking a successful exit at the optimum value possible.
The Quick Advice
Build a market leading solution, create buzz, and generate rapid revenue growth
Identify potential strategic buyers early, assess the value an acquisition would bring to them, align the solution and
business model to maximize attractiveness to multiple potential buyers, and get in their line of sight
Demonstrate a merged solution, model revenue potential, and provide an ROI on buy vs. build their own
The Longer Advice
We asked corporate development directors from the technology sector a series of questions pertaining to their strategic acquisitions. Following are the questions and the common themes that developed from their responses.
Five corporate development executives were interviewed for this article. They are all in the technology industry
and have varying ownership models. Given the sensitivity of this information they asked to have anonymous attribution.
Corporate Development Director, Public Company – 2 interviewed
Corporate Development Director, PE Backed Company – 2 interviewed
Corporate Development Director – VC Backed Company – 1 interviewed
We are thankful to all of them for sharing their time, experiences, and insights for this article.