Get big, get out, or get funded. That, in a nutshell, is what happens in transactions. You have to earn the right to play - you need to start with intrinsic value. If you have a great idea and need to get some seed capital to bring it to life, we aren't your guys. But if you have a product, you are generating revenues, and even better, if you are making money, then let's talk. Companies that have established a successful track record have put together a collection of assets that convert inputs into profits. The question is whether your assets are distinctive, protectable, or otherwise strategic. If they are, then your assets applied to other resources will create value. If they aren't, or if you are simply looking to harvest, then it's time to get out. There is something to be said for acquisition simply to increase in size, but unless you can meaningfully change the scope of your company it is unlikely that you will benefit much from these transactions. Valuable assets are usually sold by intelligent people, who tend not to undervalue their assets. But if, for example, you have the customer service skills to increase the lifetime value of a customer, then buying lower value customers can be highly lucrative... and other companies may want to buy your company to get that capability into their own repertoire.
We have a simple approach to transactions: First, do the homework and the research to have a clear and objective understanding of where you stand, your available options, and the possible outcomes of each reasonable option. Second, based on the data and facts alone, choose a plan of attack. Third, execute the transactions. For us, it's all about value. You should understand the transaction value to yourself, and to the other parties in the deals, then make sure you realize your full value, and some reasonable portion of the value in the middle... the benefits created above and beyond the combined starting values of the two entities.