Notes from Startup Exits and M&A Forum

It’s important for both the companies - the company being acquired and the acquirer - to evaluate not just products, services and financials but also whether there is culture fit between the leadership and the team at large.

⁠Due Diligence can bring to light compliance issues as well some times and it is ok. As long as it does not show gross negligence or mis-representation in data, Due Diligence typically goes through.

Diligence at the time of acquisition and diligence at the time of fund-raising are quite different. At the time of acquisition, it is much more focused on team, technology, GTM channels and financials while diligence at the time of fund raising is mostly legal and financial with some attention to other aspects.

It’s difficult for startups to plan for an exit. The plan should be created to become valuable for customers - everything else typically follows.

Yesterday, I had the privilege of participating in an insightful meetup organized by eChai and Venture Studio at Ahmedabad University, focused on Startup exits and M&A. The panel featured

Gaurav Barot

  from Tridhya Tech and

Yash Shah

  from Clientjoy, skillfully moderated by

Jatin Chaudhary

from eChai and myself as a representative from IndiaBizForSale.

The audience comprised a diverse mix of management students, early-stage startup founders, professionals, and seasoned business owners. We delved into valuable discussions on the nuances of M&A experiences, sharing insights from various perspectives.

Clientjoy's recent acquisition by a strategic player and Tridhya Group's strategic acquisitions of nine companies provided rich learning opportunities. As a representative of Indiabizforsale, I had the chance to contribute our experiences, shedding light on exit plans, the pivotal role of investment bankers and outside counsels, dynamics of deal progress, and the strategic timing of exits.

Discussions also touched upon when not to consider an exit, the standard fee structure associated with such activities by investment bankers, and more.

Takeaways from the evening:

1. Team: If you lack previous M&A experience, seek outside counsel to avoid costly mistakes and stay on course during this potential roller coaster event.

2. Unlocking Value: M&A brings definite value unlocking for entrepreneurs, providing a sense of relief as they embark on new beginnings.

3. Role of Clean Bookkeeping and Clear Communication:Transparent communication is vital for sell-sides. Share an accurate company picture to preemptively address any discrepancies that may arise.

4. Reputation Risk: Acquirers, building a fair and forward-looking reputation, attract better deal flow. Unethical tactics may yield short-term wins but jeopardize future opportunities.

5. Due Diligence: The multifaceted Due Diligence (DD) process covers business, HR, financial, legal, tech, IP diligence, and industry-specific areas.

It was truly gratifying to engage with a diverse audience in the thriving Ahmedabad ecosystem, and I'm delighted to be part of the eChai Ventures community. Looking forward to more enriching interactions!

Join us at Ahmedabad University on February 2, 2024, for the "Startup Exits and M&A Forum".

This unique event brings together leading minds in the startup ecosystem to share insights and strategies on navigating the complex world of mergers and acquisitions.

🎙️

Yash Shah

, Co-Founder, Clinetjoy
🎙️

Gaurav Barot

, CEO, Tridhya Tech
🎙️

Bhavin S Bhagat

, Co-Founder, IndiaBiz 

I'll be moderating this meetup.

Free registration @ https://echai.ventures/events/startup-exits-and-m-a-forum-feb-02-2024