A study of start-up acquisitions shows that important patterns on both sides lead to a successful integration.
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With a constant need to grow and innovate, established firms often look outside for novel products by collaborating with and acquiring start-ups. For start-ups, a tried-and-true exit strategy is acquisition, but it’s often a perilous journey as between 70% and 90% of M&As fail. In a recent article for California Management Review, Nir N. Brueller and I found that start-ups seeking an incumbent sponsor are more likely to succeed if they keep certain patterns in mind.
We created a multiple-case, inductive study of seven Israeli start-ups that were acquired by two incumbents in the IT industry to uncover the different approaches pursued
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