California owners of startups should be aware that large companies are buying smaller ones in an effort to remain competitive in their industries and to increase their scalability. Startup owners who are interested in selling their business to one of these large companies should be aware of exactly what these companies are looking for when considering a business to purchase.
The talent and leadership of the startup is an important consideration. These large companies are not just considering the assets of the startup and its potential profitability, but also the skills of the leader of the startup can be leveraged to manage entire categories within the company.
Start-ups with ready-made, effective platforms are also attractive to large companies. They are able to add to the customer base of the larger company and increase the scope of services or products it offers. Startups that have technologies that can help the larger company realize its business goals will also garner a closer look. The technology the smaller businesses provide can help the larger company be a more competitive player.
Regardless of the size of an enterprise, its brand may be one of its most valuable assets. Startups that have recognizable brands are able to provide larger companies, who may want to expand into new services or products, legitimacy with customers they were previously unable to reach effectively.
An attorney may provide a wide range of services for business owners. The attorney may assist with business formation , including advising what type of entity may best serve the client’s goals. When it is time for the company to be sold, the attorney can review the purchase agreement and provide advice on any required regulatory compliance.