Someone gets in touch. They have a job title like “Strategic Partner Originator” or work in Corporate Finance. They’d like a call with you to hear about your business and plans for the future. What do you do?
You realise this could be a potential acquirer. How do you find out more without giving too much information away? This can be scary… you’ve never done this before and they do this every day. They are experts, you are not. Maybe you will say the wrong thing that gets you into trouble later?
So how do you turn this innocent enquiry into something that works for you?
Firstly, ensure you’re already all over your numbers and that they’re accurate. If you’re going to give something away, ensure it’s correct and something you wouldn’t mind being disclosed to everyone in public (even if there is an NDA in place). You should know what numbers buyers will be interested in (ARR, CAC, NRR etc) and always have them at your fingertips.
Secondly, have a good narrative. Don’t say:
“The business is great but I am a bit bored, and I’m thinking about selling.”
Instead:
“The business is doing really well, it’s a really interesting and growing space and while I don’t have any immediate plans for exit, it’s something I would consider for the future, perhaps a few years from now. We’re working on various projects that will make us even more competitive - it’s a lot of fun and very exciting.”
A note on timing.
If you do want to sell, you need to get into a position where multiple bidders are reviewing your information and producing offers at the same time. You need all bidders at the same stage. So, don’t get too far ahead with the first person that gets in touch. Slow them down while you look for others. How do you do that? That’s a whole other question… to be addressed in another post.