Acquisitions are the most frequent exit route for venture-backed companies. In an acquisition a larger or better-resourced organisation purchases the company outright or acquires a controlling stake.

Strategic acquirers often pursue acquisitions to accelerate growth, enter new markets, gain access to proprietary technology or acquire talent. From the acquirer’s perspective, buying an established company can be faster and less risky than building equivalent capabilities internally.

For founders acquisitions can offer immediate liquidity and the opportunity to scale their impact within a larger organisation. However, they also involve trade-offs. Control is typically reduced or eliminated, and the acquired company may be integrated into existing structures, processes and cultures. Earn-outs, retention agreements and performance-based payments are common, meaning that a portion of the exit value may depend on future results rather than being realised upfront.