Merger and Acquisition
Also called M&A and Acquisition
Mergers and acquisitions: one company buying another (or two combining). For startups, being acquired is the most common exit, whether for the product, the team, or the market position.
Why it matters
Most successful startup exits are acquisitions, not IPOs, so understanding how buyers think, and building relationships before you need them, matters. An acquisition can be a great outcome or a fire sale depending on timing and leverage.
For example
A larger competitor acquires the startup for its product and customer base, the most common way a venture-backed company exits.
Worth your time
Related terms
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See how founders actually handle this on Founder life, part of the Starting Up hub.
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