In our deal, we brought over every single person from the previous company, because we wanted to make sure we took care of those folks who put their heart and soul into building that company.
I probably spent half of my time on the financial side examining A/R and aging reports. Factoring in risk factors, discounts based on payment probabilities help to assign a real monetary value to the A/R. Accounts Receivables Matter: I learned that truly understanding the makeup of accounts receivables is a time consuming, yet extremely important step.I wouldn't recommend going down the path of an acquisition if you don't have a CFO or at least a senior controller in place. Especially when acquiring a business with real revenue and accounts receivables, it's imperative that the financial due diligence is thorough. I don't think we would have been able to execute this transaction without internal financial expertise. Have Your Financial House in Order: We are fortunate because we had a CFO in place before we made this deal.Building an amazing integration plan is the largest mitigator to distraction risk. In our case, we carved out a small due diligence team to help pre-transaction, and we also have a defined integration team with a plan to ensure we can operate our normal business smoothly while we integrate. If You Fail to Plan You Plan to Fail: Almost every single person involved in the deal from our side said “distraction” when I asked them "What are you most worried about?" Acquisitions are a huge distraction when a startup is the acquirer, both prior to the deal, and more importantly, post-transaction during integration.For early stage startups, I wouldn't recommend going out shopping - let the opportunities come to you! Given the health of the business, a stellar client list, top-notch products, a fantastic team etc, the transaction just made a lot of sense. In our case, we weren't out looking to make an acquisition, but a great opportunity presented itself to us at the right time. Don’t Go Shopping: It may sound obvious that companies either get bought or sold, but this simple idea is probably the single biggest determining factor in terms of purchase price, speed of deal, who has leverage etc.
Then comes the exciting part - building new and innovative products and services. Our first task is to make sure the transition is smooth and seamless for everyone. "Right now the entire team is focusing on bringing the two companies together. "Together, we'll make a huge impact on the industry and open up new opportunities for current and future clients. Now he says the combination of the content and technology offered by both outlets will give NewsCred "much stronger value".Īs Getty Images was an investor in Daylife, although it will not be in NewsCred, Islam said the company will "take over the strategic relationship with them" also.ĭue to the multimedia focus of Daylife and NewsCred's recent steps into this area, he added that the two companies are a "good fit".Ĭo-founder of Daylife John Donovan said in a statement released via NewsCred that Daylife is "really excited about joining forces". Speaking to .uk, Islam said that when NewsCred first started "we used to think one day we're going to be as big as Daylife".
"The combination of our licensed content, with Daylife's cutting-edge tools, enables us to provide even more value to existing clients as they engage and grow their audiences with unique, fully-integrated, on-demand content experiences," NewsCred's chief executive Shafqat Islam added in the release. The arrangement means Daylife clients will "benefit from fully licensed, full-text articles, images and video" from NewsCred's content partners, while NewsCred will have access to Daylife technology, such as its 'smart galleries', described as "beautiful and simple drag-and-drop image widgets, slideshows, galleries and more". Further details on the deal were not revealed. In a release NewsCred said it "will continue to invest in, support and enhance the current Daylife cloud publishing products under the NewsCred brand". Content syndication outlet NewsCred, whose content partners include the Financial Times, the Guardian and Al Jazeera, has announced that it has acquired Daylife, which offers cloud publishing tools.
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