A Smart Bear · Jason Cohen
articleprincipleRefutation: An acquisition is always a failure
29 September 2015Profit
Source excerpt
About A Smart BearIndependent or acquired, companies always evolve, and not always for the better. Smart exits can create opportunities for everyone involved.
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Apollo layer
What a founder can learn
Founder takeaway
Don’t treat acquisition as automatic evidence that a company failed. Evaluate an exit by whether it creates worthwhile opportunities for founders, employees, customers, and the acquiring company compared with remaining independent.
Why it matters
A simplistic “independence equals success” rule can distort strategic decisions. Because every company changes over time, founders should judge acquisition offers by likely outcomes and tradeoffs rather than ideology.
Put it to work
For a potential acquisition, list the likely outcomes for founders, employees, customers, and the company under two scenarios—selling and remaining independent—then identify which assumptions would change your decision.