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Re: Swimmingly post# 17514

Saturday, 03/06/2010 3:58:05 PM

Saturday, March 06, 2010 3:58:05 PM

Post# of 157003
Google, Verizon, Yahoo or Microsoft don't buy just for the technology. There are other factors that we don't always look at, but they do. They are first attracted by the technology. Then they look at the intellectual property and any rights to it, such as a patent. If they are still interested, they look at how the finances are managed, how the partnerships are written in legal terms, who the employees are and if they will continue to work there, share structure, etc. It is not uncommon for an acquiring company to pass up a good company because their books and contracts aren't in order. Also, it isn't uncommon for a company to spend hundreds of thousands to get those things in order prior to acquisition.

The reason behind this is as follows: let's say a company is purchased for $10 million, but the legal partnerships aren't written correctly. If there are loopholes that can be exploited, they could lose control of the technology, or be sued, or simply lose their partnerships. If the risk is deemed to potentially cost them millions, they will move right on to the next company. This is why a lot of seemingly great startups end up being "unacquirable."

If we really believe GoIP Global could be acquired, we ought to probe these factors a little deeper. Maybe take a look at what portion of their expenses are going towards bookkeeping and legal. Anyone here who is a lawyer or CPA might be able to provide insight as to what to look for.
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