“I don’t know if they teach this to budding investment bankers at Harvard Business School, but often in the Valley and around the world companies are acquired not for lowering costs, increasing revenues, product, or geographical reach, but to increase ‘coolness’…
Who said it: Rob McIntosh, head of corporate development at Autodesk
In Context: In the chapter on M&A, Andrew Romans quotes several leading strategic acquirers, including Facebook, Amazon, and Autodesk. The coolness factor is probably only applicable in Silicon Valley where the war for talent is fierce, M&A activity is high, and venture capital backed startups plentiful. It attracts 43% of the US venture capital dollars. Notable deals which may or may not have had been acquired with coolness as a factor are the USD 19 billion Facebook acquisition of WhatsApp and USD 2 billion acquisition of Oculus VR. Google paid USD 3.2 billion for Nest and Apple paid USD3 billion for Beats Electronics.
Where we found it: The Entrepreneurial Bible by Andrew Romans