It seems the latest hottest thing is having a company that’s about to issue its IPO or one that’s so wildly successful another firm acquired it. The idea of going public with a company apparently is so compelling that many entrepreneurs are launching new businesses with the intention of doing just that.
This trend is increasingly visible in the technology sector, an industry known for its high growth potential. There’s really nothing wrong with an organization being acquired. In fact, selling your company to a major competitor is quite the accomplishment. But creating a company with the sole goal of selling it likely will compromise your position — and your startup’s, too. When we create something with the intention of giving it up, we also give up valuable leverage. And it’s that very leverage that can hold incredible bargaining power when it comes time to strike a deal.
Build for the long term.
Jeff Baxter, a highly respected C-level executive and current CEO and President of VBI Vaccines (NASDAQ:VBIV), puts it eloquently: “If you build a company to be acquired, it doesn’t usually happen.” Successful business owners know they need to build companies with long-term staying power. If you change your business every time the wind blows in the direction of a new corporate buyer, you weaken your organization’s core strength.
Baxter’s company follows his advice. VBI Vaccines focuses on largely undiscovered opportunities, which allows the company to develop the best possible solution on the market. “We’re very excited about VBI and we’ve been somewhat in stealth mode the last two to three years as we’ve been building our…