Coworking growth by M&A: How to maximize chances of a successful marriage? (CWE23)

This 2023 conference deck presented Thom Wernke’s account of StartDock’s acquisition of Wheelhouse, a curated workspace for independent professionals in Amsterdam. It introduced StartDock through five locations in Amsterdam and Rotterdam, then compared selected operating figures from before and after the acquisition. The number of locations rose from four to five, while the workforce increased from 23 to 25 colleagues and the number of companies served increased from 790 to 822. Revenue rose from €2.4 million to €3.1 million, and profit increased from €60,000 to €350,000. The deck used the transaction to outline practical considerations for coworking mergers and acquisitions. These included comparing acquisition costs with the cost of opening a new location, reviewing or renegotiating lease length, deciding how the acquired brand should be integrated, and assessing start-up losses. It distinguished technical integration, which required software and technical capabilities, from softer integration, which depended on people skills. The presentation concluded that acquisitions had provided a route to scaling revenue, profit and brand awareness, while identifying property contracts, branding and integration as areas requiring deliberate management.

Key findings

• Following the acquisition, StartDock’s portfolio increased from four locations to five.
• Revenue increased from €2.4 million to €3.1 million, while profit rose from €60,000 to €350,000.
• The number of colleagues increased from 23 to 25, and the number of companies served rose from 790 to 822.

Presented by Thom Wernke, StartDock, at Coworking Europe 2023