Launching a startup creates opportunities for swift gains, but unchecked expansion can destabilize any promising venture. Homejoy, once poised to disrupt the $400 billion home cleaning market, grew rapidly but shut its doors less than two years after a major funding round. The Homejoy case offers lessons for founders determined to avoid similar outcomes—a reality relevant to far more than a single company. The Fast Growth Trap: Scaling Without a Safety Net Many platforms believe rapid growth ensures market dominance. Homejoy, for example, moved into over 30 cities, investing heavily in marketing and operations before securing sustainable retention and operational quality. High customer acquisition expenses, unreliable service, and management stretched across geographies contributed to mounting losses. Operational cracks appeared quickly: ● Quality Assurance Issues : Numerous new users encountered inconsistent se...
Mergers and acquisitions are defining moments in a company’s growth journey. They offer new possibilities—expanded markets, increased capabilities, and greater financial momentum. But they also demand one thing above all: readiness. In this blog, we explore how Fractional CXOs help companies prepare for M&A by leading due diligence efforts, identifying operational gaps early, and providing expert guidance when it matters most. Why M&A Preparation Is About More Than Numbers Most growing businesses assume that being acquired is simply about hitting revenue benchmarks or showcasing growth potential. But buyers look beyond topline metrics. They evaluate leadership strength, operational maturity, cultural compatibility, and reporting clarity. According to “The Importance of Leadership and Culture to M&A Success” by Towers Perrin, deals often falter not because of the numbers, but due to a lack of alignment, undefined processes, and unclear responsibilities. These inter...