Startup Professionals Musings

MAY 3, 2014

Thus I’m getting more questions on new mechanisms, like crowd funding, and an old one long out of favor, the so-called “reverse merger.” Reverse mergers may not get your startup on the Nasdaq. Of course, they can be renamed and moved, but that may negate the cost and time advantages originally sought.

Merger 246

Merger OTC IPO Stock 246

Startup Professionals Musings

MAY 25, 2020

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Most experts don’t recommend this approach as your default strategy anymore.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

JUNE 26, 2020

For example, “We just patented a new battery technology that will cut your smartphone charge time and cost in half.” If possible, quantify these in non-technical business terms, such as dollars saved or replacement costs over time. Use non-fuzzy terms to quantify customer value. Description of the business entity you plan to form.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Both Sides of the Table

AUGUST 3, 2010

I lived through the era of companies doing premature mergers. That’s why immature teams spend so much time on mergers. A merger is not the panacea. There is no such thing a “merger of equals&#. There’s really no such thing as a merger – only acquisitions. This is a good thing.

Merger 276

Merger Technical Review Early Stage Dilution 276

YoungUpstarts

MARCH 24, 2014

If you were looking for a lawyer to represent your company for a multimillion-dollar merger, what kind of lawyer would you want? Most of us would want to hire the most experienced, cutthroat lawyer specializing in multimillion-dollar mergers. A DUI lawyer? A jack-of-all-trades, I’ll-make-your-copies-too lawyer? Didn’t think so.

Fractional CTO 228

Fractional CTO Product CTO Hire Merger 228

Startup Professionals Musings

SEPTEMBER 9, 2019

Most of their new claims to innovation are acquired through mergers and acquisitions from the entrepreneurial pipeline. The cost of entrepreneur entry is at an all-time low. They have become a by-product of innovation rather than the cause of it: Conglomerates grew from industrialization, not innovation.

Engineer 219

Engineer Entrepreneur Offshore Merger 219

Startup Professionals Musings

APRIL 28, 2023

Beyond that, there may be a large percentage of common technology where they both need to minimize cost to gain share from the big dinosaurs who already have this advantage. A strategic evolution of your combined strengths may be able to open up a new segment that neither of you could do alone in the same timeframe or at the same cost.

Non-Compete 262

Non-Compete Intellectual Property Merger Acquisition 262

YoungUpstarts

JULY 10, 2017

A change in revenue recognition means a change in the due diligence process, specifically accounting diligence, modeling, quality of earnings and cost of integration. Additionally, certain contract acquisition costs, such as commissions, may be added to the balance sheet, thus impacting the timing of expense recognition.

Technical Review 124

Technical Review Revenue Software Review Due Diligence 124

VC Cafe

JULY 13, 2022

With today’s news on the merger between Unity and Ironsource (valuing the latter at $4.4 Companies that manage to survive this period might reap the benefits in an active M&A market, startups might be able to afford to attract top talent again and VCs will have to adjust to responsible growth based on unit economics vs. at all cost.

Technical Review 158

Technical Review Early Stage Merger 158

Startup Professionals Musings

JULY 1, 2023

One of the biggest in this decade was the merger of America Online (AOL) with Time Warner, engineered in the early 2000’s by Time Warner CEO Gerald Levin and AOL CEO Steve Case for a whopping $164 billion. Time Warner was forced to take a $99 billion loss only two years after the merger, and Levin was forced out.

Merger 275

Merger Analytics Open Source America 275

The Startup Magazine

FEBRUARY 11, 2022

With over three decades of experience in private equity investments, acquisitions and mergers, Mark Hauser has developed a keen ability to recognize trends and do his due diligence. In 2016, Hauser Private Equity completed an investment in Stat Health Management, LLC, an urgent care provider with locations throughout Long Island, NY.

Private Equity 128

Private Equity Equity Technical Review Software Review 128

Startup Professionals Musings

OCTOBER 27, 2014

The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition). This hit RIM (Research In Motion) a few years ago, and cost them $650M to recover. Applying for a patent is a negotiation.

Software Review 250

Software Review Software Technical Review Intellectual Property 250

abovethecrowd.com

AUGUST 23, 2020

But in light of where we are in 2020, especially with regard to the degrading efficiency and sky-rocketing cost of capital through the structurally broken IPO process, SPACs may emerge as a legitimate third option for helping Silicon Valley companies efficiently and cost-effectively transition into the public markets.

IPO 118

IPO Silicon Valley Warrant Matching 118

Startup Professionals Musings

OCTOBER 17, 2022

The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars. Mobile and web software apps may cost even less. The large investment amounts preferred by VCs are no longer needed to launch winners.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Startup Professionals Musings

OCTOBER 5, 2020

One of the biggest in this decade was the merger of America Online (AOL) with Time Warner, engineered in the early 2000’s by Time Warner CEO Gerald Levin and AOL CEO Steve Case for a whopping $164 billion. Time Warner was forced to take a $99 billion loss only two years after the merger, and Levin was forced out.

Merger 433

Merger Analytics Open Source America 433

Startup Professionals Musings

AUGUST 1, 2020

Beyond that, there may be a large percentage of common technology where they both need to minimize cost to gain share from the big dinosaurs who already have this advantage. A strategic evolution of your combined strengths may be able to open up a new segment that neither of you could do alone in the same timeframe or at the same cost.

Non-Compete 317

Non-Compete Intellectual Property Merger Acquisition 317

YoungUpstarts

NOVEMBER 21, 2016

With new virtual and augmented reality technologies emerging, the merger of traditional and digital media is more than just on the horizon. Digital flyers require no ink, no production costs, and best of all, all the work is distributed online. The new age of advertising and marketing lies in a combination.

Software Review 100

Software Review Marketing Technical Review Merger 100

YoungUpstarts

AUGUST 13, 2019

This often means mergers and acquisitions, incremental innovation, marketing, and global expansion – which, over the long-term, only widen the gulf between the company and its customers. If you’re not focused on your customers, they will leave as soon as they find a viable alternative, and their departure is only a matter of time.

Technical Review 145

Technical Review Technology Customer Qatar 145

Startup Professionals Musings

NOVEMBER 24, 2013

Most of their new claims to innovation are acquired through mergers and acquisitions from the entrepreneurial pipeline. The cost of entrepreneur entry is at an all-time low. They have become a by-product of innovation rather than the cause of it: Conglomerates grew from industrialization, not innovation.

Entrepreneur 263

Entrepreneur Offshore Merger Technical Review 263

The Startup Magazine

JUNE 18, 2018

It is defined as an online repository of information for storing and distributing shared documents, and can be used during business transactions such as mergers and acquisitions and private equity and venture capital funding. This is for security, cost and efficiency reason. Value and cost go hand in hand. Source: Pixabay.

Technical Review 80

Technical Review Due Diligence Merger Private Equity 80

Startup Professionals Musings

SEPTEMBER 12, 2014

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Most experts don’t recommend this approach as your default strategy anymore.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Startup Professionals Musings

JUNE 5, 2012

A strategic combination can win in a new segment of the market, which neither of you could do alone in the same timeframe or at the same cost. Cost sharing and economies of scale. Companies work together on segments of their business where they believe they can minimize costs but not jeopardize their unique attributes.

Non-Compete 241

Non-Compete Merger Technical Review Software Review 241

Startup Professionals Musings

SEPTEMBER 23, 2017

Most of their new claims to innovation are acquired through mergers and acquisitions from the entrepreneurial pipeline. The cost of entrepreneur entry is at an all-time low. They have become a by-product of innovation rather than the cause of it: Conglomerates grew from industrialization, not innovation.

Offshore 139

Offshore Merger Technical Review Distribution 139

The Startup Magazine

JULY 27, 2019

The financial cost aside, having your business go through a data breach due to non-compliance could hurt its reputation among security-conscious clients. For instance, you should assess what risk lies in a merger and acquisition decision. This increases the level of visibility that you have on your compliance landscape.

Merger 90

Merger Reputation Security Employee 90

Board Effect

AUGUST 29, 2022

Adding to their worries, the annual financial cost of healthcare continues to rise. Healthcare costs are continually rising, and healthcare boards must manage their hospital budget despite their weighty challenges. Other issues are the high cost of care and carrying high levels of bad debts. Medicare and Medicaid Reimbursement.

Government 52

Government Technical Review Merger Programming 52

Startup Professionals Musings

JUNE 2, 2013

The single most important ingredient of success is not the idea, but having a team in place that has impeccable integrity, can iterate the product quickly, pivot the business model as necessary, and keep costs down in the process. This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Women Entrepreneurs Can

MARCH 9, 2022

Broadly speaking, staffing plans are used during company budget cycles to help with cost allocation. Reduce labor costs. Improve ROI on labor costs. Cost and budget allocations. If you have a planned expansion or merger in the coming year, it will have a direct impact on your hiring processes. Improve productivity.

Small Business 59

Small Business Technical Review Merger Software Review 59

Startup Professionals Musings

MAY 28, 2022

In addition, you need to focus on the unique value you bring, and maintaining the gap between what customers are willing to pay versus your best cost. In many cases, the return is not worth the cost. This may seem obvious, yet many companies ignore the keyword “exceptional” or they count on an existing market that is not “expanding.”

Intellectual Property 322

Intellectual Property Acquisition Non-Compete Merger 322

Gust

OCTOBER 19, 2014

The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition). This hit RIM (Research In Motion) a few years ago, and cost them $650M to recover. Applying for a patent is a negotiation.

Software Review 173

Software Review Software Technical Review Intellectual Property 173

The Startup Magazine

NOVEMBER 17, 2021

As a special purpose acquisition company, you can sidestep all the trappings that go with the usual initial public offering, but this shakeup introduces a totally new set of snags that can complicate your merger. But the initial uncertainty of your reverse merger isn’t your only difficulty.

Initial Public Offering 142

Initial Public Offering Merger IPO SEC 142

Board Effect

FEBRUARY 10, 2021

Reserving funds for unexpected costs. These are some of the other issues that go into establishing financial practices for healthcare organizations: Larger healthcare organizations have greater bargaining power with insurance companies then smaller organizations, which affects decisions about mergers and partnerships.

Technical Review 66

Technical Review Artificial Inteligence Software Review Government 66

Startup Professionals Musings

MAY 4, 2011

A strategic combination can win in a new segment of the market, which neither of you could do alone in the same timeframe or at the same cost. Cost sharing and economies of scale. Companies work together on segments of their business where they believe they can minimize costs but not jeopardize their unique attributes.

Partner 225

Partner Non-Compete Merger Technical Review 225

YoungUpstarts

JUNE 17, 2015

Additionally, plan for an acquisition now by telling your users in your privacy policy that you may transfer the data in the event of a merger or acquisition. Startups have bigger concerns than privacy, or so they think. In fact, VCs increasingly report that privacy can affect a startup’s ability to raise capital. Do what you say.

Software Review 100

Software Review Technical Review Due Diligence Startup 100

Both Sides of the Table

AUGUST 27, 2012

We once thought the merger of AOL/Time Warner needed to be investigated by the DOJ. Our inability to cost-effectively educate large numbers of people to compete in the future world where software really does begin to eat the world (in Marc Andreessen’s wise words). It simply hasn’t played out in history. Laughable now.

Silicon Valley 299

Silicon Valley Technical Review Early Stage Cofounder 299

ReadWriteStart

JUNE 1, 2020

It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. These phases are focused on inorganic growth, mergers, buyouts, acquisitions, and exit preparation for the business. Moreover, there is always a possibility of a future merger and consolidation.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

OCTOBER 25, 2018

Toronto’s Mark Attanasio has spent some 20 years advising businesses at various stages in their development on what it takes to position themselves for growth – whether it’s through traditional transactional activities like management buyouts and mergers and acquisitions or via a public listing on a Canadian stock exchange.

Partner 113

Partner Technical Review Management Due Diligence 113

Startup Professionals Musings

FEBRUARY 15, 2021

Capitalize on shared costs and common distribution. Competitors can become strategic investors or merger candidates. It’s very unusual for two competitors to have exactly the same strengths – in development, marketing, distribution, or customer support. The auto industry learned this a long time ago.

Partner 434

Partner Non-disclosure Agreement Intellectual Property Non-Compete 434