Initial conversations with Corporate Development teams are crucial and can either set a positive tone for the M&A process or cut it short. Don’t wing it—founders risk leaking significant value on these early calls. Be well-prepared, expect tough questions, and practice responding confidently.
Here are some common questions and example responses:
Q: How much would it take to buy you?
A: “We’re looking for the right partner to maximize long-term value for everyone.”(This shows you’re focused on strategic fit and deal terms, not just price.)
Q: Why do you want to sell?
A: “We’re looking to accelerate growth, reduce risk, and capitalize on the massive opportunity ahead.”(This positions your interest as a proactive move, not a forced sale.)
Q: How much runway do you have?
A: If you’re in a strong position: “We are cashflow positive.” If not: “We’re happy to share more about our financials as the process progresses.”(Regardless of your financial state, avoid revealing too much too soon.)
Q: Who else are you talking to?
A: “We’re evaluating interest from multiple partners based on strategic fit and long-term potential.”(This response keeps specifics confidential, reinforces your criteria, and maintains leverage.)
Q: What unique IP or know-how do you have?
A: Emphasize the tough problems you’ve solved and the unique value your product or service offers.
If your business isn’t performing well, be ready for tougher questions like:
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Why hasn’t your product/service taken off yet?
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What have you learned from your customers?
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What are your product’s current limitations?
Finally, there will be questions you aren’t ready to answer. Have a few escape phrases ready:
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“Let me discuss that with my co-founder(s) and follow up with you.”
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“That’s a great question—I’ll circle back with more detail.”