I’ve recently spoken with 25+ founders about their M&A experiences.
Here are 7 areas that are often overlooked when selling a business 👇
1. Early Relationship Building: Begin nurturing connections with potential partners far earlier than seems necessary. This cannot be overstated.
2. Wide Targeting: Vastly expand your target acquirer universe. Challenge your assumptions of why a potential partner should not be included on your list.
3. Co-founder Alignment: Ensure all your co-founders are unified on what’s important and agree on the range of acceptable outcomes. Tackle the tough discussions early.
4. Meeting Preparation: Rigorously prepare for interactions with potential partners. Anticipate and practice responses to the hard questions you will face.
5. Listening: Prioritize understanding the needs and motivations of potential partners rather than selling your company’s vision.
6. Strong Positioning: Develop an unassailable BATNA, such as a clear path to profitability or access to more capital.
7. Cultural Fit: Thoroughly assess the culture of your potential acquirer. Do reverse diligence to make sure it is the right fit.
What are some other common mistakes founders make in M&A?