IPOs are less common than acquisitions for startup. Why isn't anyone talking about them? The myths and biases that prevent founders from thinking ahead are: optimism bias, present bias, signaling failures, and the myth of acquisition failures. When an acquisition deal is suddenly on the table, understanding these and knowing how to work around them can ensure founders have the broadest slate of options.
Every year, there are over 30 acquisitions. Most entrepreneurs and their board members know that an acquisition is the most common destiny of a successful startup, but they rarely discuss potential sales. They only take exit planning seriously when their startup desperately needs to sell or is interested in selling. They either miss out on important opportunities or end up with a bad outcome.