We are getting a lot of questions on the subject of M&A. The most common question is “What are the reasons technology companies get acquired?” The answers are not necessarily in order of priority and may overlap.
- To acquire technology and incorporate it in suite/product/broad offer of the parent company.
- To reach into new markets, widen customer base, acquire users, offer existing products to new customer base.
- To acquire patent portfolio
- To mitigate risks of technology/market disruption
- To diversify solutions portfolio
- To eliminate competition and prevent competing company from acquiring the asset
- To increase revenues
- To get into local market.