ENTR

How would you evaluate a potential acquisition target from a product perspective?

Model answer

Model answerProduct evaluation of an acquisition comes down to three questions: does their user base complement or overlap ours, does their technology accelerate something we'd otherwise spend years building, and is there a culture of product thinking we'd want to absorb — or a culture clash we'd spend years fixing? I'd spend as much time on the team and culture as on the product itself. Great products with bad team dynamics are hard integration targets.

Framework · Build / Buy / Partner

  1. DDifferentiation test
    Do they solve something we can't, or something we just haven't gotten to yet?
  2. UUser base compatibility
    Complement or cannibalize? Overlap analysis is non-negotiable
  3. TTeam and culture
    Acquisition is a people decision. Bad culture fit kills integration.
  4. IIntegration cost
    How long to full integration? Every month of limbo is a productivity tax

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