The Win-Win

“If you’re an entrepreneur and you come to Google, your days as an entrepreneur are not over” – David Lawee

In life you’d be hard-pressed to find a win-win situation where both parties in a discussion come away feeling like they were the winners. That may be especially true in the world of M&A. Google is trying to break that old-fashioned win-lose paradigm in business. In a recent article in the WSJ, Google is cited as having completed 48 acquisitions over the last year. The main focus of Google will continue to be small start-ups, according to David Lawee, Google’s vice president of corporate development.

These small acquisitions allow Google to penetrate small, niche markets where they see virtually unlimited growth potential. On the other side of the negotiation table the fledgling entrepreneur/engineer is able to develop their idea with a wealth of resources under an extended, more relaxed time-horizon. This corporate development strategy seems to be working for Google, as well as the entrepreneurs. Consider the following:

-“We’ve been fortunate to have autonomy (under Google)” – Shan Sinha, co-founder DocVerse

-More than 2/3 of the founders of companies acquired by Google in its 12.5 year history are still at Google

-Google has a 70% success rate with acquisitions