For a strategic acquirer like Booz Allen, a cold inbound from an investment banker for an unknown company is a negative signal. Their M&A strategy relies on long-term relationship cultivation; if they don't know the company before it hits the market, they likely won't engage.

When establishing a new M&A function, the initial challenge is operational readiness. Booz Allen's Corp Dev leader forced functional teams to engage in direct conversations with targets, moving away from passive trackers to build diligence competency and cultural acceptance.

To source proprietary hybrid capital deals, avoid the capital markets teams at PE firms, as their job is to minimize cost of capital. Instead, build relationships directly with individual deal partners in specific industries. This allows you to become a trusted, go-to provider for complex, time-sensitive situations where speed and certainty are valued over price.

Rather than just submitting a bid, smart buyers proactively call the investment banker beforehand to frame their offer. This "working the refs" strategy helps manage the banker's expectations, gather intelligence, and avoid being dismissed, even if the initial bid is not the highest.

Private equity firms leverage industry advisors for more than just expertise. A crucial, often overlooked role is to provide sellers, particularly founders, with a sense of security. The advisor vouches for the PE firm's reputation and intentions, which can be critical in getting a deal over the line.

Contrary to the common buyer preference for proprietary deals, CPC views investment bankers as a healthy part of the M&A process. They believe an banker-led process helps sellers mentally and emotionally prepare for the significant decision of selling their business, ultimately leading to a smoother, more successful transaction.

Instead of a big-name generalist firm, Huckabee hired the top investment banker specializing in his architecture/engineering space. This niche expert provided tailored advice on what PE firms would see as 'dings' on his business, leading to a better-prepared and more valuable sale.

The company's M&A philosophy prioritizes acquiring companies they have previously partnered with. This approach provides deep pre-diligence insights into capabilities, culture, and strategic fit, significantly de-risking the acquisition and strengthening the business case for the deal.

Instead of only the buyer investigating the target, successful M&A involves "reverse due diligence," where the target is educated about the buyer's company. This transparency helps the target team understand how they will fit, fostering excitement and alignment for the post-close journey.