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ARTICLE · 23 JANUARY 2019

Strategies For Parenting Start-Ups, Post-Acquisition

In recent years, we have seen more acquisitions of start-ups by big corporations in the tech industry, healthcare, retail, fashion, beauty, food, and transportation.

CanadaCorporate/Commercial Law

In recent years, we have seen more acquisitions of start-ups by big corporations in the tech industry, healthcare, retail, fashion, beauty, food, and transportation. The benefits of M&A transactions in these sectors has been more widely recognized. For instance, for a start-up, partnering with a large corporation provides broader market access, deeper industry knowledge and accelerated brand development opportunities. From the perspective of the corporation, it means access to growing markets, new technologies, and tapping into niche skills, talents and entrepreneurial and agile culture.

Despite the surging interest in enhancing collaborations between start-ups and bigger companies from both sides, Accenture research estimated half of such attempts are to fail, and Imaginatik and MassChallenge's survey found that 50% of the start-ups rated their experience in interacting with big corporations as "mediocre or worse." An important factor affecting the start-ups'

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