Why a Bigger Startup will buy your Startup?

A lot of entrepreneurs start up with a vision of getting bought out by a leader in that space. So why would these leaders want to buy a smaller player when they can probably do the same themselves? 

Here are some reasons which I perceive would be important for them.

Scale: If your startup has scaled up enough and a bigger player feels it will be most cost and time effective to buy rather than build, you may get lucky.

Good Fit for Business: If your business acts as a potential forward/backward integration for a bigger player and adds substantial value for the latter, you may end up getting an offer.

Good Model Fit: The models of your startup and the bigger company should be similar to ensure smoother integration. For example, a horizontal marketplace may not be very keen in buying an inventory model based vertical player.

Intellectual Property Rights: If you have a patent or any other IPR for an interesting product, the bigger players may get interested in you.

Good Team: Sometimes bigger players want to buy a startup to acquire their team in the process.

If you are looking to selling your startup in the future, look at building something which can attract bigger players in the space.