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.)
If your business isn’t performing well, be ready for tougher questions like:
-
Why hasn’t your product/service taken off yet?
-
What have you learned from your customers?
-
What are your product’s current limitations?
Finally, there will be questions you aren’t ready to answer. Have a few escape phrases ready:
-
“Let me discuss that with my co-founder(s) and follow up with you.”
-
“That’s a great question—I’ll circle back with more detail.”