Exit: what you need to know about M&A

For many founders, M&A is either an exciting opportunity or a last resort. While some startups get acquired at their peak, the reality is that most founders consider selling when growth slows, cash runs low, or the market shifts against them. Yet, too many entrepreneurs assume that if they build something great, buyers will naturally come knocking. That’s not how it works.

In this episode, we break down key insights, helping you understand when to start thinking about an exit and how to prepare.

Listen on

TIMESTAMPS:

(0:00) Intro - Why M&A matters for founders

(0:47) When should you start thinking about M&A?

(1:17) Top 3 reasons for starting a process

(1:36) How to prepare for an acquisition

(2:21) Checklist

(3:46) 5 key lessons from real M&A experiences

(4:55) Recap & Final takeaways

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Key takeaways:

1. The two key moments to start thinking about M&A

Timing is everything in M&A. There are two key moments when founders typically start exploring acquisition:

• When your company is thriving. This is the ideal scenario—you have leverage, strong financials, and strategic value that acquirers are actively seeking.

• When your company is struggling. The more common reality. Growth has slowed, funding options are drying up, and M&A becomes a necessary conversation.

The challenge?

Many founders only think about M&A when it’s too late. If you’re running low on runway, you have far fewer options and less negotiating power.

2. Companies are bought, not sold

One of the biggest M&A misconceptions is that you simply list your company for sale and wait for offers. In reality, acquisitions happen because buyers see value in what you’ve built. That value could be:

• Your technology

• Your product

• Your revenue/customer base

• Your team

Understanding what makes your company attractive to buyers is critical to crafting the right narrative and positioning yourself for a successful deal.

3. The M&A preparation checklist

M&A is a process, and buyers expect you to have your house in order. Here’s a quick checklist to prepare:

✅ Financials: Clean cap table, organised financial statements, clear debt status.

✅ Legal documents: GDPR compliance, signed contracts with employees and customers, proper commercial agreements.

✅ Operational efficiency: Demonstrating cost optimisation and a path to profitability.

✅ Team readiness: Deciding how and when to inform your key team members about a potential deal.

You’d be surprised how many companies lose deals simply because they weren’t prepared for DD.

4. Five M&A lessons from founders who’ve been there

Drawing from real M&A experiences, here are five critical lessons for founders:

1. You (i.e. CEO) run the process, not your bankers or investors. Stay in control and actively manage negotiations.

2. Align with your shareholders early. Get everyone on board before you start conversations with buyers.

3. Have a Plan B. Know what happens if you don’t get an acceptable offer—can you continue operating or raise more capital?

4. Show momentum during the process. Acquirers want to see growth, even during the M&A process.

5. Build relationships early. The best deals happen with companies you already know—clients, partners, investors—not last-minute outreach.

Conclusion

M&A isn’t just about getting acquired. It’s about strategic preparation, knowing the true value of your company (i.e. asset), and running a structured process. The earlier you start building relationships with potential acquirers and preparing your financials, the better your outcome will be.

Listen to the full Sidekick podcast episode here!