In a rapidly consolidating industry where you have personal relationships with every potential buyer's CEO, hiring an industry-specialist banker is still critical. The banker acts as a necessary intermediary to navigate complex 'frenemy' dynamics, professionally manage a competitive process, and put pressure on buyers in a way you cannot.

The first 60-90 minute conversation with a potential target is dedicated entirely to exchanging personal backgrounds and life experiences. The acquirer's CEO leads with a vulnerable story to build trust and assess three key traits—commitment, passion, and likability—before financials are ever discussed.

To get honest customer feedback during diligence, IFS has the target's CEO make warm introductions to a third-party firm under the guise of a routine "operational feedback session." This allows the acquirer to assess churn risk and product sentiment without revealing the M&A context.

A successful exit is a highly choreographed dance, not an abrupt decision. Founders should spend years building relationships with line-of-business leaders—not just Corp Dev—at potential acquiring companies. The goal is to 'incept' the idea of an acquisition long before it's needed.

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.

For companies with a complex story, such as one built through multiple add-on acquisitions, the preparation for sale should begin a year before going to market. This lead time is essential for a banker to help consolidate disparate data, create a clean 'customer cube,' commission market studies, and coach management on the pitch.

For proactive deal sourcing, the initial contact is a high-stakes sales call. F5's Andy Cohen invests 2-10 hours researching a target before the first outreach. This deep dive into podcasts, blog posts, and mutual connections enables a substantive, flattering conversation that builds immediate rapport and credibility.

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.

When a potential acquirer calls, the founder's default mode should be information gathering, not pitching. By asking strategic questions ("Who else are you talking to?", "What are your goals?"), founders can extract valuable competitive intelligence about the market and the larger company’s plans, regardless of whether a deal happens.