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“At the end of the day, we build companies to benefit our customers, our employees, our investors, and to make the world a better place than it was before,” said Melltoo CEO Morrad Irsane, who co-founded the company with his wife, Sharene Lee. Acquisition of UAE reverse logistics platform Cartlow. “Exiting is just part of the journey, and the things ahead are more important. As long as we benefit our customers, employees, and investors and make the world a better place, we will be satisfied.”
The acquisition will see customers across Meltoo’s 30 categories and over 500,000 products now automatically redirected to Cartlow’s platform to buy or sell their favorite and never-used items while also enjoying free shipping, 10 Features such as 12-day return policy and 12-day return policy. As for Cartlow, founder and CEO Mohammed Sleiman believes the deal will give the business and its cloud-based technology a better foothold in the global reverse logistics market, which is expected to be worth $958 billion by 2028. .
Commenting on the acquisition process, Slimane said there are no specific rules governing the process. “This is based on a simple principle – understand that acquiring a business is not about integration, but about accelerating the overall vision of the company,” he said. When asked about the key lessons he learned along the way, he first pointed out the importance of staying focused on future goals. “In most cases, the negotiation phase is where people get stuck,” Slayman said. “The company you want to acquire will have a certain vision, and it’s important to emphasize how that vision will fit into your own company’s vision and goals to ensure long-term success.”
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Sleiman also recommends that both parties in the acquisition process work to build a rapport with each other because “if both parties take the time to understand each other and each person’s overall goals for the business, the likelihood of an agreement is greater.” In addition, Suleiman advised them to adopt an open mind and make smart trade-offs. “During negotiations, both sides often get stuck on specific challenges,” he explained. “Therefore, exploiting the existence of these challenges makes it more likely that both parties will reach an agreement.”
For his part, Irsane believes understanding why an acquirer wants to acquire your business is a good starting point. “This is very important for negotiations to create a win-win situation,” he said. “Furthermore, this understanding can help you evaluate how far you can go in a negotiation. My second lesson, then, is to be patient because a lot of what goes into completing an acquisition transaction is beyond an individual’s control.” He Final advice to other entrepreneurs is to be completely transparent as “this will prevent delays and help all parties avoid unnecessary conflicts.” Irsane adds: “Speaking clearly (and in writing) is essential. Deals can often go awry due to some Having as much legal disclosure as possible from the beginning will make the entire process smoother.”
Prior to acquiring Meltoo, which they founded in 2014, Lee and Irsane had raised three rounds of funding for the startup, speaking to a total of 40 investors during the process. “When we first started, startups were chasing investors and venture capital was still a very small industry in the MENA region,” recalls Ilsane. “Eight years on, there’s a lot of money chasing startups now, and things have changed.” That said, Irsane said startups need to maintain a certain momentum in each fundraising process in order to succeed on that front. conduct.
“While the lifespan of a startup is never predictable and growth is never linear, startups are still expected to follow a certain trajectory to obtain funding,” explains Irsane. “This is one of the many challenges facing financing in the MENA region. One of the challenges is that investors are not particularly forgiving when a startup doesn’t follow the expected trajectory. To overcome this, startups have to be very honest and self-aware – don’t try to fudge the numbers, or try to avoid the problem. is the only way to build credibility and trust.
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Mohammed Sleiman, founder and CEO of Cartlow. Image courtesy of Catlow.
‘TREP Talk: An Acquirer’s Perspective
Cartlow founder and CEO Mohammed Sleiman explains what to consider when considering an acquisition
1. Consider the rationale behind an acquisition “Why are you acquiring this business and what is your ultimate goal? This is a very strategic move for you in the market. Do you understand the ins and outs of the business you plan to acquire and how it can help from What can you achieve in the long term?
2. Know your competitors and market “Most entrepreneurs spend more time working on the product than understanding the competition and market. Always focus on what makes you stand out from the competition and how acquiring startups/other businesses might benefit your entire ecosystem. “
3. donkeys Impact on your financial situation “Basically, understand how the acquisition will impact your financials, whether it will increase or decrease your profit margins, and how it will impact your revenue.”
‘TREP Talk: An Acquiree’s Perspective
Meltoo co-founder and CEO Morrad Irsane on what to remember when considering an exit via acquisition
1. Network is crucial “Exit happens in strong ecosystems, and ecosystems are built on networks. Be open to long-term relationships with others in the ecosystem that are not purely transactional in nature. Don’t be afraid to engage with Talk to your competitors.
2. Seek win-win “Business acquisitions and mergers are based on value-added – not necessarily monetary value, but certainly the value that can be generated through the acquisition. Founders are often focused on getting the greatest financial return for the company, but approaching acquisitions from this angle creates a relationship between the two parties. An adversarial relationship is formed, which means transactions are unstable and prone to failure.
3. Get the team involved “Acquisitions have a huge impact on teams. It’s important to get the support of the team and investors and involve them in the process. There will inevitably be some problems during the acquisition process, and getting the team involved in the process means that even if While the situation looks bleak, business operations remain stable, which is critical to ensuring the deal is completed.
RELATED: ‘We Got Funded!’ UAE-based Cartlow Raises $18M Series A to Dominate MENA’s E-Commerce Ecosystem
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