HubSpot's M&A Insights: What Founders Need to Know
HubSpot co-founder Brian Halligan shares valuable insights into the realities of mergers and acquisitions (M&A). His experience reveals surprising truths that challenge common assumptions about startup exits.
The Reality of Acquisition Offers
Contrary to popular belief, acquisition offers are far less common than many founders think. Even HubSpot, a highly successful SaaS company, didn't receive any serious acquisition offers in 18 years.
Key M&A Takeaways for Founders
- M&A is Complex: Integrating companies is resource-intensive, with significant hidden costs beyond the initial price tag.
- Inbound Interest is Key: Successfully selling a company requires inbound interest. Actively shopping your company rarely works.
- Partners Can Become Competitors: Strategic partnerships can quickly transform into competition. HubSpot's experience with Salesforce illustrates this dynamic.
- Champion Your Deal: M&A decisions often hinge on the support of a key internal champion within the acquiring company.
- The Human Element Matters: Culture fit and personal impressions play a significant role in M&A decisions.
- Stay on the Radar: Maintain relationships with potential acquirers through regular updates and communication.
- Serious Offers are Rare: When a genuine offer from a reputable company arises, give it serious consideration. These opportunities are infrequent.
Focus on Building a Sustainable Business
While building relationships with potential acquirers is important, prioritize creating a strong, independent business. Halligan emphasizes the goal of building a company that endures for generations.
“Our goal was to build a company our grandkids would be proud of.” - Brian Halligan
