Today at breakfast we had an interesting discussion on selling your technology vs. selling your business. We discussed the motivation of the buying company (making money):
Company will buy startups to get key personnel.
Company will buy a product which they can plug into their sales process. Startups must have a whole product, training, documentation, support.
- New Market
Finally companies will buy another company as a way to expand into a new market, a new vertical, usually it is an adjunct market.
In general, companies are not looking for technology, they want the team in place and committed to growing the business.