In a non-control deal, an investor cannot fire management. Therefore, the primary diligence focus must shift from the business itself to the founder's character and the potential for a strong partnership, as this relationship is the ultimate determinant of success.

To ensure Day 1 alignment and retain key talent, treat integration planning as a collaborative process. Share the developing integration plan with the target's leadership during due diligence. This allows them to validate assumptions, provide critical feedback, and feel like partners in building the future company, rather than having a plan imposed on them.

A compressed diligence process relies heavily on projections. A superior approach is building a relationship over 1-2 years, which allows an investor to witness the company's actual execution against its stated goals, providing far greater conviction than any financial model.

To truly understand a prospect's decision-making process, ask for more than you expect to get, such as requesting to be part of their internal evaluation meeting. Even a "no" often prompts them to reveal more about their process, criteria, and stakeholders than a standard discovery question would.

Enterprise leaders aren't motivated by solving small, specific problems. Founders succeed by "vision casting"—selling a future state or opportunity that gives the buyer a competitive edge ("alpha"). This excites them enough to champion a deal internally.

To win highly sought-after deals, growth investors must build relationships years in advance. This involves providing tangible help with hiring, customer introductions, and strategic advice, effectively acting as an investor long before deploying capital.

Instead of walking into a pitch unprepared, Reid Hoffman advises founders to use large language models to pre-emptively critique their business idea. Prompting an AI to act as a skeptical VC helps founders anticipate tough questions and strengthen their narrative before meeting real investors.

Palo Alto Networks dedicates the majority of its M&A diligence to co-developing a multi-year product roadmap with the target's team. This ensures full strategic alignment before the deal is signed, avoiding the common failure mode where product visions clash after the acquisition is complete.

Effective negotiation avoids getting bogged down in details initially. Instead, focus on reaching a high-level agreement on five key pillars: valuation, capital structure, governance, strategy, and exit plan. Only after this framework is set should you dive into the details.