How can you build strong relationships with acquirers before exit negotiations?

You would want to identify your targets strategically. You can check their financials, their mission and vision to assess their goal-alignment, check for potential synergies between you and them. This will help you check whether the acquirers goals match yours. You don't want to exit a company or sell it off to someone who doesn't have a strong background, do you? Get your research in place by segregating your potential acquirers as per their interest, business expansion plans, 5-year financials, etc. Either do it yourself or get a business analyst to do it for you :)

𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐘𝐨𝐮𝐫 𝐓𝐚𝐫𝐠𝐞𝐭𝐬: Choosing an acquirer is like picking a dance partner. You want someone who knows the steps and won't step on your toes. Research your potential acquirers, check their acquisition history, and see if they can dance to your startup tune. And hey, make a dashboard – because nothing says "Let's tango" like a well-prepared visual aid.

Your values have to align. You need to be very peculiar about this, sometimes, an acquisition can get you excited but do think of all the wrong things that can happen in the future before you shake your hand. Founders who foresee worst possible scenarios tend to make good acquirer choices and also can be prepared for anything that can arise. You need to do your homework properly and choose the people that resonate with the values of you and your company.

Building strong relationships with potential acquirers before entering exit negotiations is essential for several reasons. Here are some strategies to foster these relationships: *Networking *Engage Early *Provide Value *Transparency *Build Personal Connections *Stay Connected *Customize Approach *Focus on Mutual Benefits *Demonstrate Scalability *Seek Advisory Input

Once you have identified the potential acquirers and studied them well, it is time to meet the decision-makers. After all they are the ones who you will communicate your value proposition with. Networking events, LinkedIn, community-led industry events, leverage your existing network and peers to connect with them. When you have someone introducing you, the conversation flows a little easily. Stay alert and keep your networks engaged to connect better.

𝐂𝐨𝐧𝐧𝐞𝐜𝐭 𝐰𝐢𝐭𝐡 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧-𝐌𝐚𝐤𝐞𝐫𝐬: Just like in the world of dating, you don't propose on the first date. Connect with the decision-makers, waltz with the executives at events or virtually on LinkedIn. Understand their rhythm, learn their preferences, and make sure the partnership is a harmonious duet before you start planning the big performance.

𝐏𝐫𝐨𝐯𝐢𝐝𝐞 𝐕𝐚𝐥𝐮𝐞 𝐚𝐧𝐝 𝐈𝐧𝐬𝐢𝐠𝐡𝐭: Think of this step as impressing your date's parents. You want to show you've got substance! Provide value and insight, share your plans, visions, and throw in some political policies for that extra flair. It's not just a pitch; it's a love letter to your potential acquirer, sealed with research and a sprinkle of charm.

Building trust with potential acquirers is pivotal. A blend of professionalism and personal connection can transform interactions. Prioritize transparency, responsiveness, and respect in all communications. Show genuine interest in their objectives and feedback. Finding common ground on personal interests or values can further strengthen the relationship. Just be honest, upfront and yourself. Keep things simple and see if you resonate and connect with that person. Connection is really important.

𝐁𝐮𝐢𝐥𝐝 𝐓𝐫𝐮𝐬𝐭 𝐚𝐧𝐝 𝐑𝐚𝐩𝐩𝐨𝐫𝐭: As an Ethiopian businessman wisely said, "𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝒑𝒂𝒓𝒕𝒏𝒆𝒓𝒔𝒉𝒊𝒑 𝒊𝒔 𝒍𝒊𝒌𝒆 𝒎𝒂𝒓𝒓𝒊𝒂𝒈𝒆." It's not just about business; it's about a personal connection. Build trust, show interest in their goals, and maybe even send a virtual bouquet every now and then. Because in business, just like in love, rapport is the key to a lasting partnership.

𝐌𝐚𝐢𝐧𝐭𝐚𝐢𝐧 𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐚𝐧𝐝 𝐄𝐧𝐠𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Don't be that person who ghosts after a fantastic first date. Maintain regular contact, share your startup journey, and don't forget to cheer on your potential acquirer's achievements. Consistent communication keeps the flame alive – or, in business terms, the deal warm.

Since founders are the ones with the passion and the grit to create and drive the company, it's usual for M&A contracts to stipulate the founders must stay working for the company for X years. This is to ensure smooth transition, as no one else has the same passion the founders have.

Start building with the end in mind. Look for companies in your space with the largest market caps improve on what they are doing and make your self an easy target to acquire.