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Startup being acquired. Stressful suspense.

My startup is in the process of being acquired by a large tech company. It has been ongoing for quite a while now and the other side always has bureaucratic delays on every step of the way. It will still take months to complete the deal due to duedil and such. We are literally running on fumes to complete the process. This is just super stressful and it feels like it will never end. Anyone has similar experiences?

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If the money isn't in the bank, then continue to run your startup as if the deal will never actually close. A lot of big tech companies can drag smaller targets through delay after delay causing irreparable damage should the deal not close or use it as leverage to reduce deal terms.

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Congrats! Only word of advice I can offer is that it is not a done deal till the wired money hits your account. I have heard many stories of the last hope for a startup was resting on an acquisition deal. After them spending months going through the whole due diligence process burning months of runway they no longer have. The parties finally reach the final agreements to be signed and the whole deal falls apart at the very last moment. Then the startup has no other option than to shutdown. if you come in a position of weakness as a struggling startup running short on runway with little options, it is a strategy for the acquirer to purposefully drag out the acquisition process to continue weakening your position. You are basically at their mercy. You will either sell out at a significantly lower amount than what they initially offered at the very last moment or walk away with nothing but lost time. If the deal blows up and you are forced to shutdown, they will just come and swipe up everything you had anyways just like you said. This startup game can be ruthless.

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July 26, 2020 at 5:06:48 AM

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