Mergers & Acquisitions: A Strategy for High Technology Companies
By
Jacqueline A Daunt
of
Fenwick & West LLP
A recent survey showed that between two and five emerging technology companies (TechCos) are acquired for every one that does an initial public offering (IPO). Acquisitions can provide strategic, operating and financial benefits to both TechCo and the company acquiring it (LargeCo). A strategic acquisition can provide TechCo's shareholders with earlier liquidity than an IPO, with less risk and dilution.
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