A Lesson from Lalo
When you build something great, your acquirer will find you
The acquisition of Lalo Tequila by Tito’s Vodka offers a fundamental lesson for any drinks founder, but especially those just starting out: 🔍 Focus on building a great company, not on who might buy it. 💰
🚀 When Lalo launched in 2020, there was no inkling that Tito’s would acquire them. I’m confident that Lalo’s pitch deck didn’t have Tito’s listed as a potential acquirer. Why would they? Tito’s never purchased a brand before.
🔮 Trying to guess who might acquire your brand 5+ or 10+ years in the future is a fool’s errand because:
The company might not exist yet. The next big player in the space could be a brand that hasn’t even launched.
The company might not have made acquisitions before. This was the case with Tito’s.
The company might not have made acquisitions in your category or industry before. Your brand might be the one that opens the door for them.
As Jason Fried and David Heinemeier Hansson write in Rework, “Your priorities are out of whack if you’re thinking about getting out before you even dive in.”
Focus on what you can control:
🌊 your Liquid
™️ your Brand
👥 your Team
🥇 Operational Excellence
Build a brand that consumers love and a business that creates real value. The rest will take care of itself.