Do startups need M&A advisory firms to raise money or exit?
“Tech acquirers focus on future results that come with combining the merging entities’ strengths, says Fabrice Lombardo, founding managing partner and chairman of the board at Gereje Corporate Finance, an M&A firm based in Asia and Europe.
If it makes strategic sense, a startup doesn’t even have to be profitable in order to be an attractive acquisition, especially if it proves to have solid margins.
For instance, Gereje recently helped close an M&A deal for a fintech company with a valuation of US$35 million, even though it was adding turnover of US$3 million while also losing US$3 million. The company received three purchase offers. “So you see, the valuation has nothing to do with the company size,” says Lombardo.”
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