Aldrich Law Firm, Ltd.
Aldrich Law Firm, Ltd.

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877-508-0433Good People Deserve Good Lawyers. ®

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What startups need to do to be acquired

Nevada startup owners who are looking to have their companies acquired by a major company may need to meet certain criteria. For instance, a startup may need to create a platform that a larger company could take advantage of. It may also increase the chances of being acquired if it creates a technology that an established firm would like to exploit for its own purposes.

In some cases, companies want to acquire a startup because it allows them to take advantage of the owner’s talents. When the startup is purchased, the owner could go on to manage the company on behalf of whichever entity decides to acquire it. Business owners who want to be purchased by another company should work hard to establish its brand. In many cases, larger companies acquire smaller ones simply to piggyback off of their notoriety with existing customers.

In some cases, the startup company that is being acquired caters to a segment of the market that an established brand would like to target. Through the purchase of a startup organization, it can take advantage of its existing customer base and work to market toward that segment of the market. For example, companies that are looking to gain access to younger customers may purchase a startup that uses new technology that caters to their unique buying habits.

When business startups allow themselves to be acquired by another company, there may be questions as to who retains the rights to intellectual or other property. Working with an attorney may help startup owners obtain clarity as to how an acquisition works and how it impacts their companies. Legal counsel may also be able to help write or review a purchase agreement to ensure that it meets the needs of those selling their companies.

John P. Aldrich
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