MergerMarket

Joining forces: How to integrate start-ups into large corporates

Joining forces: How to integrate start-ups into large corporates

Acquiring a start-up is becoming a popular way for large corporations to modernize internal practices, buy in technology and connect with younger customers. Integrating a start-up into a large conglomerate, however, needs to be done with care to deliver results.

  • listopada 14, 2018
  • min read

MergerMarket

Joining forces: How to integrate start-ups into large corporates

What are the biggest risks faced by both start-ups and large corporates when undertaking such transactions? What does a success story look like? And how can both sides prepare to make the most of such a combination? In order to answer these questions and gain insight into the secrets of successful start-up integration, MergerMarket spoke with leading experts in the field.

Any founders or start-up investors need to ask whether the large acquirer is able to be a good parent and drive the profitability and vision of the start-up," said Arnaud Leroi, a partner with Bain & Company an dhead of the firm's M&A practice in EMEA. "When attempting to answer that question, a good starting point is to look at it from the other side, and ask why a large company is buying a smaller one."

"Large companies recognize that they don’t have a monopoly on intelligence and that start-ups, which are not bound by the same processes and internal governance, are more agile and able to bring products and technology to market significantly faster," Leroi added.

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