Erik Roth

A company needs to be really clear on why they’re acquiring something. If it’s an acqui-hire, then it’s the talent. If it’s a business-model acquisition, it’s the business, the technology, and the IP [intellectual property]. There are lots of different reasons. So first, be super clear on why you’re acquiring something. And then, I always like to say, there’s pitchers and catchers. The pitcher is who’s pitching the company to the large organization. And the catcher is the mechanism to catch it. It’s a little bit of a baseball analogy. And if you don’t have a strong catching mechanism for ventures in particular and really strategically understand where it fits into your portfolio, then the likelihood that you’re going to derive tremendous value out of that acquisition is quite a bit lower.

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