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Merger and Acquisition Due Diligence Checklist

The Startup Magazine

When it comes to mergers and acquisitions, taking due diligence takes center stage. This may include things like contingent liabilities , litigation risks, intellectual property-related issues, as well as problematic contracts. Technology and Intellectual Property. Mergers and acquisition matters can be weighty.

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Join The Unicorn Club Of Billion-Dollar Companies

Startup Professionals Musings

Premium ventures need real traction, such as 100 million users, 10 million in revenue, or brand recognition around the world. Strong intellectual property and defensibility. Patents and other intellectual property are a necessary initial “barrier to entry,” but these are just the beginning.

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5 Venture Periods Call For Unique Funding Strategies

Startup Professionals Musings

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

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7 Key Ingredients to Address the Challenge of Growth

Startup Professionals Musings

Smart companies use acquisitions to enhance momentum and accelerate revenue growth. When contemplating a merger or acquisition, you should never overlook the human factors of post-acquisition integration , such as stress among existing employees, IT incompatibilities, and employee turnover. Avoid stock deals, and pay with cash.

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5 Startup Stages And The Right Investors For Each One

Startup Professionals Musings

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

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Preparing For An Acquisition

YoungUpstarts

Watch out for complex areas such as accounting for revenue, inventory, contingencies, equity instruments and consolidation. Any intellectual property should be properly documented in order to avoid question of ownership. Books and records. Employees and contractors. Protect your intangibles.

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14 Points To Consider When Structuring A Deal

YoungUpstarts

No matter what you do, you want to make sure that in the process that you protect your intellectual property, have non-disclosure agreements in place, if possible non-circumvents. Being wholly owned has the same effect, but it does obviously require a merger or an acquisition to occur. Lock down rights and security.