SaaStr · 2012-10-19
· 4975d
M&A Sponsor Turnover: Why You Should Accept Acquisition Offers Promptly
Jason Lemkin argues that founders should accept M&A offers immediately rather than waiting for better terms, citing data showing that over 60% of acquisition sponsors at acquiring companies leave within 6 months of deal closing. The loss of the deal champion creates significant risk and uncertainty for acquired companies, making timing critical to deal completion and post-acquisition success.
Metrics in this report
Sponsor Turnover Rate Post-M&A
60+%
greater than
Deal sponsors leaving within 12 months of acquisition closing
Typical Sponsor Departure Timeline
6months
median
Time from deal closing to sponsor departure at acquirer