I just advised a startup (seed stage) to help them get acquired.
They raised about $5m, had a team of ~6, and got acquired by a hot AI company (can't say who yet, but you know them).
The things that came up most often:
- Storytelling for getting acquired is different than storytelling for raising. When raising VC, you have to tell a "perfect" story about how you'll become huge. When getting acquired, it's ok to have "spikes" - some things that are bad are OK - as long as your spikes fit well into the acquirer. Tell a story about 1+1 = 3.
- Momentum is everything. Keep telling & reinforcing the story every day/week all the way through close.
- Related: a million things can kill the deal (legal, finance, an exec wakes up one day and changes their mind), so momentum around your combined story is the thing that can help pull your deal through those inevitable issues that will come up.
- Legal issues _will_ come up. Expect 2-3 months & hundreds of thousand of dollars of legal work. Be as buttoned up as you can be with your contracts/docs/etc. through the life of your company.
- Your negotiation leverage is based on your storytelling ability. Does your potential acquirer believe they can't survive without you?
- Most acquisitions only get done if there is a huge need from the acquirer. The metaphor we use is: "is there a hole in the lobby? does the CEO need to walk around it every day on the way into their office?" - your startup should fix that hole.
- Most companies can only acquirer 1 (maybe 2) companies a year. Why should your company be that 1 big bet?
Good luck!