I’m currently searching for advise on a possible acquisition of a competing product. The situation is:
The only competing product with a similar USP has mostly stopped development 6 months ago as the founders have moved on to a different company (there is no team in place for the existing product) so I reached out to see if they are up to a possible aquisition / partnership. They came back to me with a yes and lots of details about the business.
- They still have revenue mostly from maintainance renewals (this is a desktop software not a SAAS).
- They have around 25000 leads and 1300 customers
- 2-3 features would be a great addition to my existing product
So the aquisition would be less about the technologie and mostly about aquirering customers / leads. They sell mainly through word of mouth but the SEO benefits would still be there.
My question is, how do I make up my mind about wether this is a smart move? How would I try to minimize the one time payment and instead offer some kind of deal with maybe revenue sharing for a time (or something totally different).
Anybody experiences / opinions?