Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. The goal is to get a corporate investment or an outright acquisition of the startup. The common mistake acquirers make is treating all acquisitions the same. Predicting Success or Failure of an Acquisition.

A look at the Constant Contact acquisition


The Deal: Acquisition: Endurance buying all of Constant Contact’s outstanding shares. Strategic Rationale : Endurance has done 40 acquisition since inception; M&A is a core competency for Endurance. CTCT will continue to operate on its own.

Trending Sources

Congrats On Your Acquisition! Some Thoughts On Data Integration And More.


Yet, even though our team had experience with several previous successful acquisitions, after the initial rush of excitement, the hard reality of bringing together two separate entities set in. By Ron Faith, president and CEO of Datacastle.

What Happens When Startups Turn from Their Innovation Stage to Operational Excellence?

Both Sides of the Table

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. Sam & Rahul have worked closely together on “innovate & operate” since the earliest days of MakeSpace.

Startups Need Mergers And Acquisitions For Growth

Startup Professionals Musings

This strategy is called “organic growth,” yet it alone may yield only a fraction of the potential you could achieve, unless you add the additional strategies of partnerships and M&A (mergers and acquisitions). Actively pursue mergers and acquisitions. Partial acquisition.

The Inside Story of a Small Startup Acquisition (Part 1)

Software By Rob

This acquisition is a long story, but if you have a few minutes let me tell you the best parts. If you’re interested you can read about one of my acquisitions from a few years back in a post titled The Inside Story of a Small Software Acquisition. Photo by psiaki.

Managing The Operations Of Your Startup


Your success or failure will not rely upon the historical data and industry statistics, but from how well you manage daily operations. Here are five tips for assuming better command over your startup operations: Consolidate and Negotiate. by Cameron Johnson.

Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

Since selling Matt has gone on to become one of the smartest angels I have seen operate. He is very hands-on and helpful – especially for any company looking into customer acquisition.

How to Position Your Business to Be Acquired

Up and Running

The sad reality is that many business acquisitions do not work out as hoped. To make your business ripe for acquisition, make your business appealing to potential buyers. To break this down, think about every acquisition or purchase you make in daily life.

The Backuisition and 9 Other Types of Acquisitions [humor]


10 Types of Acquisitions. Crackuisition : BigCo is addicted to acquisitions. So, they go off looking for an out-of-town acquisition to do. Like building operating systems. It's time for some Friday fun.

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Inside ExactTarget's Journey: From IPO to $2.5 Billion Acquisition

Inc Startups

Very few entrepreneurs manage to take a company from start-up to IPO--much less to acquisition. We''re the biggest acquisition in Salesforce history by orders of magnitude, and they really want us to keep our identity and retain everything special about the company.

7 Easy and Effective Customer Segments to Target in Facebook Ads


If you have a strong CRM, and an effective email marketing operation, you have a head start over plenty of advertisers, believe me. Facebook Custom Audience campaigns will help you cover the gap, and get some real mileage out of your acquisitions.

Marketing Beyond Acquisition


In my conversations with people in the startup world – from angel investors through entrepreneurs and employees with vast startup experience – I often hear about their perceptions of the marketing role as being pretty limited to acquisition. Second – timely, cost-effective customer acquisition is a matter of life-or-death to most startups.


6 Rules for Strategic Acquisitions

Inc Startups

Mike Volpi led 75 acquisitions during his 7-year stint as chief strategy officer of Cisco. And both buyouts come on the heels of Yahoo’s high-profile acquisition of Tumblr for $1.1 Choose one goal and tailor your acquisitions accordingly. "At

Ikea Buys TaskRabbit

Inc Startups

The Swedish furniture company says TaskRabbit will remain as an independent operation. Growth Through Acquisition

Steve Blank: Why Corporate Acquisitions of Startups Fail

Inc Startups

More often than not the results of these acquisitions are disappointing. The goal is to get a corporate investment or an outright acquisition of their startups. The common mistake acquirers make is treating all acquisitions the same.

Conversion: The Most Important Internet Metric of All (Revisited)

Internet analytics can be roughly broken down into two simple activities – customer acquisition and customer optimization. Nearly every Internet company on the planet has invested in some form of the first activity, customer acquisition.

Buying Your Way Into Entrepreneurship: What You Need to Know

Up and Running

There are a lot of people who consider themselves fixers and developers,” Columbia Business School Adjunct Professor Timothy Bovard, who teaches Entrepreneurship Through Acquisition said in an article on the school’s site. Acquisition entrepreneurship means you’ll hit the ground running.

How To Choose An M&A Advisor When You’re Selling Your ‘Baby’


For a young entrepreneur, the mergers and acquisitions process can be exciting and potentially lucrative but it can also be the source of considerable stress. He or she should understand your business, the industry in which it operates, and have a good grasp of your company’s culture.

Make Glassdoor Work for Your Company


Balboa Capital operates in multiple locations with a staff of close to 275 financing professionals. . Professionalisms Glassdoor hiring practices human resources Kevin Umeda talent acquisition talent managementby Kevin Umeda, Manager of Sales Planning and Coordination, Balboa Capital.

Stop Overpaying for Acquisitions

Inc Startups

In fact, this sort of logic usually leads management teams to overpay for an acquisition. This may explain why most acquisitions destroy shareholder value instead of creating it. Management teams often assert their own growth strategy as a justification for an acquisition.

5 Tips For Growing Your Start-up Into An Attractive Acquisition Target


For many start-up companies, the dream is to one day become the other half in a merger or acquisition with a larger, more developed organisation. Currently, all things technology based have a high acquisition rate if they can provide a service for a wide range of emerging technology markets.

Planning for the Future: Your Exit Strategy

Up and Running

We will cover them in more depth below: Acquisition. Acquisition: The acquisition is often known as a “merger and acquisition.” An acquisition or merger does not have to happen on a big scale.

Cracking the Code - Untitled Article

Cracking the Code

As, I was about to lead Accel’s first investment in the company, I began building a list of all the start-ups operating in a similar or adjacent space. Acquisitions Blablacar International Expansion Venture CapitalMost startups fail at getting a new country off the ground.

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Holvi to open in 19 European countries, staff acquisitions in three


SMEs and other small time businesses need financial tools to help them build and operate business in the digital economy, where traditional paper processes and payment systems just dont fit in.

Optimizing the Free Trial Signup – How Flow Got a 17% Lift [Case Study]


Depending on your cost per lead acquisition, as well as conversion rates per traffic source, you’ll want to spend time A/B testing the amount of information asked for, the way it’s asked, and the order it’s asked in (among other things), while prioritizing specific sources.

3 Ways to Grow Your Startup

The Startup Magazine

Expanding your marketing, administration, and operations can present some serious challenges, however, if you prepare well in advance, then you will have no problem navigating the competitive business climate. 3 Mergers, Partnerships and Acquisitions.

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How to plan to make a successful acquisition


One of my company CEO’s recently described his rule for acquisition success, and it resonated with me as a great goal for planning during acquisition exercises.

Accidental VC: When, Exactly, Should Seed-Stage Startups Look for Office Space?

View from Seed

As an operator, not an investor, I’m amazed at how many casual, throwaway comments that happen inside a VC’s office would be genuinely useful to entrepreneurs building their businesses. Accidental VC office space operations

Three reasons Microsoft will not buy Nokia at any price

Don Dodge on The Next Big Thing

operating system platform for any hardware device. The FTC and EU wouldn't let them - Almost any big acquisition by Microsoft, or any of the big players, will attract an FTC, EU, and even China review. Acquisitions Apple MicrosoftNokia ( NOK ) stock price is dropping to historic lows with a current market cap of just $9.3 Billion. Nokia has revenues of over $38B, $6B in cash, 30,000 patents, and a great brand. Investors and sharks are circling.

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Yahoo's Former Finance VP on the Nitty Gritty of Smart Acquisitions

Inc Startups

When Yahoo''s not in the news for firing its COO , it''s in the news for making one acquisition or another. Prior to his job at Acquia, he was the vice president of corporate finance at Yahoo, where he played a lead role in more than $5 billion in acquisitions and business development deals.

Accelerate Startup Growth by Looking Outside the Box

Startup Professionals Musings

This strategy is called “organic growth,” yet it alone may yield only a fraction of the potential you could achieve, unless you add the additional strategies of partnerships and M&A (mergers and acquisitions). Actively pursue mergers and acquisitions. Partial acquisition.

Lean Marketing: Basic Metrics You Should be Watching. Now.

crowdSPRING Blog

Most small businesses and startups follow some version of this rational approach to operating and marketing a business. Customer Acquisition Cost. Marketing is an analytical process. Setting goals comes first. Developing strategy is second.

How an Acquisition is Like a Romance

Inc Startups

But behind these get-rich quick dreams, what's it really like to go through a Silicon Valley acquisition and trade start-up life for a role at a bigger company? We spoke to acquisition veterans to find out.

18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

It’s misleadingly precise to have two digits to the right of the decimal in a CAC/LTV multiple for year 3 of your forecast (“Customer Acquisition Cost”/”LifeTime Value of Customer”). The median investor looking at your proposal is in her 40s. Her eyes are going, not to mention her brain.

Game Fundings And Acquisitions $1.89B In 2010


Venturebeat has a story out on 2010 and how game fundings and acquisitions developed compared to 2009. Growth was spectacular and in terms of percentages, the size of the fundings and acquisitions rose by 130% compared to 2009.

Measuring Incrementality: Controlled Experiments to the Rescue!

Occam's Razor

Shout loudly until the entire company knows what you are up to (and beg for their co-operation). * Advanced Analytics Marketing Tips Search Engine Marketing acquisition portfolio optimization actionable web analytics excellent analytics tips experimentation and testing

Sales for Startups: Lead Acquisition

Mark Birch

There are several factors to consider when pursuing any lead acquisition program. That second cost measure usually gets forgotten, but you need that in order to get a sense whether a program falls into your CAC (customer acquisition cost) range.

Groupon's Potential Acquisitions In The Nordics And Baltics?


In Europe, Groupon has acquired Citydeal, which is the biggest single operator that also has some business in the Nordics at least. Groupon has stated it will continue acquisitions to expand into new markets and gain market share.

7 Startup Entrepreneurs On How To Attract Top Talent


Because of that asymmetry, it can often be more important to create novel ways of attracting top talent to a new company, than it is to obtain operational funding. Interviews building a team Entrepreneurship hiring startup talent talent acquisition by Philip Acuña.