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When tasked with creating a new product line from zero, a CPO's first move can be to acquire a small company already operating in the space. This "buy before build" strategy can dramatically accelerate progress by inheriting a team that has already solved many of the foundational problems, bypassing a lengthy hiring and development cycle.

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During a transformation from services to product, identify and commercialize the reusable tools that services teams have already built to support clients. Instead of starting from scratch, productizing these existing "mini-products" aligns them with the broader product strategy, saves development time, and leverages proven solutions.

Palo Alto Networks' M&A playbook mandates that acquired founders, who out-innovated internal teams, take charge. This empowers the founders and leverages their proven expertise, even if it unnerves existing employees. The people who were winning in the market should be put in charge.

After an acquisition, don't try to learn and sell the entire new product catalog at once. This leads to overwhelm. Instead, select a small, relevant batch of products (e.g., five) to focus on for a set period, then rotate to a new batch. This creates a manageable, step-by-step learning process.

Moving from a large corporation to a startup requires blending foundational knowledge of scaling processes with newfound resourcefulness and risk appetite. This transition builds a holistic business muscle, not just a product one, by forcing leaders to operate without endless resources or established brand trust.

Amplitude's CEO acquired multiple founder-led companies as a deliberate strategy to counteract the inherent slowness of a large SaaS business. This injects a startup's pace and an AI-native mindset directly into the organization to accelerate its AI transformation.

To launch new products and compete with agile startups, embed a small "incubation seller" team directly within the technology organization. This model ensures tight alignment between product, engineering, and the first revenue-generating efforts, mirroring the cross-functional approach of an early-stage company.

In a fast-moving field like cybersecurity, it's impossible to build everything in-house. By treating M&A as an extension of the R&D department, a large company can leverage the venture-backed ecosystem to acquire innovative teams and products that are already validated.

Creating a new product category is slow. The fastest path to revenue is building a superior solution that replaces an existing, budgeted expense. By positioning against the cost of an in-house team or a legacy service, the purchase becomes a simple replacement decision, not a new investment.

Deel's acquisition strategy accelerates time-to-market by rebuilding an acquired product's front-end within two months and immediately giving it to the sales team. While salespeople are learning and selling, the engineering team rebuilds the entire back-end natively. This parallel process closes a potential 12-month integration gap and generates immediate market feedback.

In high-growth phases, M&A should accelerate product development, not find new growth engines. Start with small team/IP acquisitions to build the internal capacity for integration. This de-risks larger, more strategic deals later as the company matures and its organic growth slows.

CPOs Can Accelerate New Initiatives by Acquiring Small Companies Instead of Building Teams | RiffOn