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.

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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