So one of many weirdest calls you’ll get as a founder is when a BigCo out of the blue desires to speak about buying you. Actually out of nowhere.
Not somebody you’ve identified properly for years. However actually a BigCo you’ve got barely even talked to. Or simply know a bit in passing. Or typically, have by no means even talked to in any respect.
- Typically that decision is for actual. They wish to do one thing, now.
- Typically, it’s the beginning of one thing. That takes years to ultimately occur.
- But when it’s actually out of left discipline, it’s typically them doing diligence.
Ought to they enter the market themselves? Or — typically, they’re truly considering of shopping for your competitor. It’s a bizarre dialog when some BigCo randomly begins digging deep in your enterprise, speaking about “Construct, Purchase or Associate.”
That’s the phrase you’ll hear rather a lot. “Construct, Purchase or Associate.” It’s a traditional framework that M&A / company growth professionals (amongst others) use. They usually type of can’t assist however use it as their opener for a lot of discussions.
Now should you actually have zero relationship with this Large Tech Co, your spider sense might go up. This doesn’t make sense. However there’s all the time a logic.
Right here’s my solely recommendation: founders typically hunker down after they get these calls. They don’t wish to share. They don’t wish to make investments any time. As a result of their intestine is, it’s a bizarre fishing expedition going nowhere. And it might be.
However my recommendation is all the time take the decision. Spend the hour. And share greater than you might be inclined to. Why:
- First, it’s an effective way to start out constructing a relationship.
- Second, even when they wish to purchase your competitor, that deal might fall by means of. They’re typically a second selection, too.
- Third, you may get some nice intelligence. Corp Dev of us particularly are sometimes nice at gossip. When you share, they’ll typically share.
Your spider sense is usually proper. That bizarre name about “Construct, Purchase or Associate” could also be off.
However I feel down the street you’ll discover placing in a hour and sharing just a few information they may determine anyway was price it.
