In acquisition talks, you gotta listen more than you speak.

It’s like being in a poker game. Let them reveal their hand while you just sit back and say, ‘Interesting move.’

5 Tips on Handling Acquisition Talks 

• Why Read:

  • This article provides essential advice for founders navigating acquisition talks, covering key strategies for effective negotiation and ensuring the best outcome for their team.

• Featuring:

  • Jason M. Lemkin (@jasonlk) Founder at SaaStr

• Link: 

  • “5 Tips On How to Handle Acquisition Talks”

Key Concepts and Tactics:

• Listen More and Talk Less:

  • Point: As the target company, focus on listening and understanding the motivations of the acquirer, rather than trying to convince them to do the deal.

  • "Listen and learn. Understand what everyone's motivations are. Why your champion is doing the deal. People do M&A — not companies. Be proud, speak with numbers and data, show them you have the best team in the industry. And let them do the rest of the talking. You can't really talk them into doing a deal. But you can talk them out of it."

• Ask for at Least 20% More Than Your High Number:

  • Point: Don't be entirely transparent about your minimum acceptable price; instead, ask for at least 20% more to give yourself negotiating room.

  • "You won't offend anyone and it will give you a buffer to work on the human side of things. Corporate Development is trained to both offer 50% of what they hope you take to start, and in the end, to always try to get a discount. It's sort of like procurement. You have to ask for at least 120% of your High Price to ever get there."

• Negotiate for Your Team:

  • Point: Use the acquisition talks as your last, best chance to negotiate benefits and terms for your team, as your leverage will diminish once the deal is signed and closed.

  • "It's your last, best chance to negotiate for the team, as both Harry Glaser of Periscope Data (acquired $130m) and Brett Goldstein (ex-head of M&A at Google) note below. Be cool. But once the deal is signed, almost all your leverage here goes away. And once it's closed — it's almost all gone."

• Know Your BATNA (Best Alternative to a Negotiated Agreement):

  • Point: Be aware of your best alternative if the deal falls through, as many M&A deals do not come to fruition.

  • "Your Best Alternative to whatever they are offering. Because a lot of M&A deals do fall apart. And if you walk, usually the deal is dead. Truly strategic deals often come back for a second pass. But smaller, or more tactical deals, or VP-led deals … if you say No … are often gone forever."

• Hire a Banker:

  • Point: Unless the deal is very small, always engage a banker to help with the negotiation process and spare you from potentially damaging your relationship with your new bosses.

  • "Always hire a banker (unless the deal is tiny). They can do 1-4 for you. Makes it much easier. And spares you from pissing off your new bosses."

How to Build Brand Energy

Why Read: 

• Gain insights on leveraging authenticators, empowering fans, and building a lifestyle brand.

Featuring:

• Grace Gordon (@dialGG), Founder + Chief Brand Officer at GG // goodgame

Link: 

• “How to build brand energy”

Key Concepts and Tactics:

• The Evolving Role of Authenticators in Branding:

  • Point: Understand that authenticators now serve as a critical bridge between brands and discerning consumers, validating brands both online and offline.

  • "Regardless of niche, they provide deep expertise that resonates with highly online audiences who amplify their influence. They drive adoption among valuable core communities, acting as a two-way bridge between brands and discerning consumers."

• The Importance of Cities in Energy Marketing:

  • Point: Recognize that cities still matter for energy marketing, as they are where culture is most active and influential authenticators validate brands through lived experiences.

  • "For them, cities still very much matter because that's where culture is most active. This means cities are where influence resides and where authenticators will validate things through lived experiences."

• Designing a Cultural Product with the Core Community in Mind:

  • Point: Create a product that deeply resonates with your most committed fans and community, and allow them to amplify it for you.

  • "Charli and her collaborators have designed a functional cultural product straight from the beating heart of Bushwick, arguably one of the most online zip codes worldwide, and served it up for her fans as a fuel for those living and aspiring to the lifestyle she is singing about, wherever they might be."

• High-Touch Engagement and Showing Up Where Your Audience Is:

  • Point: Build credibility by engaging with your audience in the spaces where your product is meant to be consumed, making them feel like they are part of a bigger moment.

  • "Charli authenticated her own product by showing up in the spaces it's meant to be consumed, to tease and then launch. From Le Bain to the Lot Radio, Charli ran the gamut of exclusive spaces for her muse 'brat' girlies, through to free pop-ups in the streets of Greenpoint that made locals feel like they were part of a bigger moment."

• Empowering Fans with Tools for Creative Expression:

  • Point: Provide your audience with simple tools and brand codes that enable them to participate in and amplify your brand story easily.

  • "Using both online tools (the brat art generator) and the offline BRAT wall in Brooklyn, Charli handed the 'roll-out content' keys over to fans. The result is an almost endless supply of memes which is a dominant language of relevance in 2024."

• Building a Lifestyle and Mindset Around Your Brand:

  • Point: Extend your brand story into a lifestyle and mindset that offers a rich platform for fan expression and participation.

  • "Charli's curation of the Brat collection at Roxy Cinema celebrated the tenets of a 'BRAT' lifestyle, dimensionalizing the project beyond a one-off album, and turning it into a lifestyle and a mindset."

• Being Authentic and Reflecting the Times:

  • Point: Be honest and candid about where you're at as a brand, as being real in the current era is a magnet for both people and brands.

  • "Through both the album itself and her content around it, Charli has been honest and candid about where she's at. It's a refreshingly honest contribution amidst a category clogged with insincerity."

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