The dealmaking world has seen a gradual increase in transactions across all categories since the start of the pandemic, including in Canada's tech sector.
Partner and head of the Emerging Companies and Venture Capital group Konata Lake joined the DMZ Movers and Shakers podcast to share his insight and effective strategies for startups thinking about entering a merger or acquisition.
"What startups are realizing is that 'I can build organically, or I can acquire to help me scale fast enough.' There's just tremendous demand for this kind of ... accelerated way of functioning remotely," Konata said.
DMZ Movers and Shakers · 20: Konata Lake, Partner at Torys LLP on priming your startup for a merger or acquisition
To be strategic in today's M&A ecosystem, Konata recommended that startups start by asking themselves if they are a buyer or a seller.
"You need to think through this paradigm often: should you continue and try to build this thing that you're really passionate about or exit and be part of a larger company—and try to grow this idea within a larger company—but also get the cash out today," he said.
Konata noted that founders also need to be mindful that there are a host of business strategies and opportunities that they may not have been exposed to yet. Forming an independent advisory board is essential and can help to stress-test ideas.
"The reality is you don't know what you don't know... having the right advisory board that's a combination of people you simply value and trust and people who are experts in their particular field that's relevant to your startup is critical and worth its weight in gold," he said.
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