$10 billion acquisition offer turned down by 366Pi

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$10 billion acquisition offer turned down by 366Pi

Source: http://garylawrencelive.com

Source: http://garylawrencelive.com

It may be a child’s play to start a business organization but, it requires a panache,  élan, a verve, and tons of skills to raise a successful one. It isn’t uncommon to witness a business persevering for manifold years before achieving a billion dollar valuation, organic or acquired. But, it’s definitely rarest of the rare to witness a two years old business turning down a $10 billion acquisition offer, especially if you’re a management consulting company. This is exactly what WE did in last 24 hours. Hence, in first hand, we decided to share with you all why we did so before any speculation starts making round on the social media.

It’s no longer surprising when one fine morning you’re approached by a social media giant for a probable takeover opportunity.  We live in an age crazy valuations surrounded by sky rocketing M&A environment. But, it’s definitely surprising when you are just a 2 years old company with 2 co-founders, 2 office locations, 2 many virtual staffs, and 2 laptops and 1 website as asset. In a nutshell, $10 billion wasn’t the business’ valuation but valuation for the two co-founders. The numero uno question that came, based on the prima-facie offer, to our mind was “Are we intellectually worth just $5 billion each”.

We lived 24 years in last 24 hours. It was one of those time that test individuals’ character. A time where any amount of acquired education or practical experience looks nascent. A time to deep dive and reflect your vision. A time to envision your ultimate goal. Somehow, after hours of living and dying thoughts, we explored that money isn’t the only motivating factor for us to be in the business. At least, not just $10 billion. We realized it soon that we are headed towards building a business organization having capability to reach much more than the offered amount. We realized that our happiness lies in achieving that 10X milestone than surrendering now, something that makes us a strategy and planning team.

To put in a nutshell, the deal that was offered and got shot down by us was as follow:

  • $10 billion valuation with $8 billion in cash and $2 billion in equity
  • Board representation on acquirer’s company
  • Full time consultants to the acquirer company around our capability area, a monthly paid position
  • Limitation on number of clients that we can work for post-acquisition. Limited to 3, including acquirer
  • Can’t serve client in related industry i.e. social media

Undoubtedly, it was an offer worth salivating for. But, as a consulting organization you strive to serve as many clients as possible, creating success stories, and helping people achieve their vision. The offer of being limited to 3 clients was the next thing that didn’t went fine with us. The sheer amount of capital failed to replace our karmic quotient.

To speak the truth, even our karmic values were about to get compromised and acquisition might have happened had it not been the April fool’s day.  We wish your workday would be as interesting as our yet-to-be multi-billion dollar company’s April fool’s Day prank.

Let the word spread before the speculative spread of news on the social media. We do honor your time and hence, as a token of appreciation we are providing you with the 2013 M&A report.

You can download the complete research report at The Global Consulting Merger & Acquisition.

By |2018-01-25T04:28:55+00:00April 1st, 2014|Blog|0 Comments

About the Author:

I am an Entrepreneur by passion, Management Consultant by profession, Business Adviser by skill, and a Mentor by choice. I am a Management (MBA) grad and worked larger part of my career as an Independent Consultant with clients across the globe. As a Consultant my role has always been to plan and execute strategic business initiatives for companies looking to surpass the threshold at an inflection point. My focus primarily spread across following areas: Business Planning, Strategic Planning, Market Strategy, and Product Management. I have helped vast pool of clients with business investment activity and none of my business plans have ever failed to raise an investment. My Investment raising experience range from US$ 2 million to US$ 80 million. As a Business Adviser I've worked on few niche areas like Blue Ocean Strategy, Business Model Integration, Social Media Planning, Business Launch Strategy, Brand Planning, and Integrated Market Planning. I have always been an active member and knowledge contributor on Social Media and you can find my notes on relevant LinkedIn groups, open platform like Quora, in 140 characters on Twitter, and Company and SkyPiCast community page on Facebook. I am a voracious reader, silent speaker, loud writer, and an avid listener. You can easily find me writing too many blogs on my business' website. I appreciate creativity and innovation with lead by example attitude. As an Independent Consultant I always wanted to create success stories which I could share with people as my own. Hence, I Co-Founded a consulting business and top it up with a Tech venture. I am equally optimistic about continuing my success stories under the name of 366Pi group of companies. I trust I will be able to contribute to my clients' success as I always used to and look forward to networking and talking with fellow members.