Raising too much capital makes mutually satisfying acquisitions nearly impossible
Karan Bajaj · Founder and CEO of @WhitehatJr Karan Bajaj on his journey | 100x Entrepreneur Podcast · May 16, 2021 · at 46:17
WhiteHat Jr founder Karan Bajaj explains how modest capital raising enabled a clean $300 million cash acquisition by Byju's.
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“It's very hard for the acquirer, the acquired and the investors to be happy, right? Because if you raise too much money, valuations become out of control. Acquirer who's looking at a company with such exaggerated valuations will always pause, right? On the other hand, if you sell for less than investors who've invested in high valuation will be kind of like a penalized, right?”
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