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In my experience, there are 4 types of startup acquisitions:
(1) Team aka acquihire – Maybe some money back, $1.01 on the dollar if you’re lucky – it’s all venture optics, eg “I got some money back.” Increasingly are being done as asset acqs with offer letters vs company acq to reduce legal exposure
(2) Team + Tech – More rare than just a decade ago. BigTech has figured out it’s often cheaper to just build or rewrite from scratch. This acq may get a 1-3x return
(3) Strategic – Outcomes are irrational. 90% of the time, it’s driven b/c the CEO says I want to buy X company and/or right after an E-Team offsite. This can be revenue accretive or just simply b/c a Founder doesn’t like the existence of X or defensive. Anti-trust has slowed this down a bit.
(4) A Key Person – This is also irrational and often insider baseball as the same tech and/or research celebs bounce. In this case, an acq will be created simply to get a specific individual. The outcome can vary but often is somewhere between (2) and (3)
In most of these instances, the founders and team usually does well relatively. It’s the investors that either win big or take the loss.
https://www.YouTube.com/watch?v=ejeIz4EhoJ0
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