From the very beginning of the dot-com boom, the idea of raising money, acquiring another company, or going public has always been sexy and exciting to people. It all seems very romantic when you’re looking from the outside in, but when you’re on the inside, the idea of acquiring another company is often incredibly daunting and stressful.
So, with that all in mind, the question is this: As a founder or CEO of a company, how do you determine if your startup is ready to acquire another company?
Here are 6 indicators to look for:
- You have the right people on your team
- Your churn rate is decreasing and your Net Promoter Score is increasing
- You have more than enough cash in the bank
- You are exceeding goals month-over-month
- You’ve positioned your company as a market leader
- You have a clear reason for wanting to acquire