Mergers and acquisitions represent one of the most common and often the most beneficial exit strategies for startups. M&A plays a leading role in integrating innovation into markets over the longer-term. 

Tech entrepreneurs and startups are driven by much more than profit. These innovators are passionate about their inventions and want to see the products they develop in action, changing people’s lives and becoming mainstream in the long term—from new medicines to AI applications and apps that help manage your diet.

By finding the right M&A partner and negotiating the right deal, startups can both cement a strong future for their innovation and achieve the best financial results for the innovators and their investors.

When startups reach maturity, they have to take the next step. For the majority, an IPO is either not possible or is not the best option. For instance, the inventor of a fingerprint biometric scanner for smartphones has a product better suited for an M&A, since the technology is only a small part of a bigger device.

However, finding the most suitable M&A partner and structuring a deal that meets the startup’s and founders’ hopes and goals can be difficult. Wrong decisions and wrong deals can destroy years of hard work. And that’s only step 1. Step 2 is the legal expertise and efforts needed to outline the deal and oversee the due diligence involved on both sides.