How to make your sale a success ?

In 2021, Europe saw a record-breaking year for mergers and acquisitions (M&A), with a 100% increase in transaction value and a 49% increase in volume compared to the previous year. (1) Additionally, the Tech sector accounted for 20% of M&A transactions globally during the first nine months of the year. (2)

These figures demonstrate the strength of the Tech’s VC financing model, which is based on exit principles, and encourage Venture Capitalists to further invest in startups. Furthermore, they show that startups have become significant drivers of growth in a world where digitalization has accelerated due to the pandemic, thanks to their innovative capacity.

However, these impressive statistics should not overshadow the fact that successfully completing a sale remains a challenging and demanding process.

For founders, selling their business represents years of hard work and commitment and can significantly alter their personal and professional outlook.

Shareholders benefit from realizing their investment and validating the trust they placed in a small startup’s growth prospects several years earlier.

For the acquirer, purchasing a company accelerates their growth and is not solely the domain of large corporations. La cession n’est d’ailleurs pas que l’affaire de grands groupes. The increasing number of scale-ups purchasing small companies to become leaders in their industry is a positive sign of the French Tech ecosystem’s vitality and growing maturity.

Selling a company is not merely the culmination of an entrepreneurial adventure but the start of a new chapter, placing the company and its teams in a new growth dynamic. Therefore, integration with the acquirer remains a crucial strategic issue, and entrepreneurs are responsible for ensuring its success.

The success of startup sales is essential for perpetuating the French Tech story’s ability to create global giants that serve innovation and define tomorrow’s standards.

Hence, the Galion, whose mission is to assist entrepreneurs at all stages of their journey, has produced a guide based on its members’ experience and its partner Edmond de Rothschild’s expertise designed to support those wishing to embark on this path.

¹ Datasite report produced in partnership with Mergermarket in December 2021

² Global M&A in 2021 set to be biggest ever year – Refinitiv Perspectives