Unlike PE or public companies, long-held private family businesses often prioritize stable, growing dividends. Executives may be rewarded on enterprise value, but must align M&A strategy with the family's goal of dividend growth, as rising enterprise value can create undesirable tax burdens for shareholders.

In a large deal, Milliken discovered post-close that the seller's team had prioritized their diligence questions over other bidders. This preferential treatment, earned through a respectful and strategic approach, created a significant information advantage during the competitive process.

Beyond a simple transaction, an offer to purchase a small business validates the owner's life's work. Even if rejected, the gesture makes the owner feel valued and successful, strengthening relationships and creating goodwill in a world filled with customer complaints.

Unlike PLCs obsessed with quarterly earnings, family-owned businesses often focus on long-term value by prioritizing customer satisfaction and employee well-being. This holistic, multi-time-horizon approach leads to superior, sustained market performance, as evidenced by their overrepresentation among advertising effectiveness award winners.

Unlike PE firms focused on maximizing IRR, Buffett built a reputation for nurturing acquired companies. This trust allowed him to buy great businesses, often from families, for less money than competitors because sellers valued the preservation of their legacy over the highest bid.

When M&A negotiations stall, the root cause is often sentimental, not financial. Uncovering a seller's personal attachment (e.g., hunting rights, a favorite truck, community sponsorships) allows for creative, non-monetary solutions that have high emotional value for the seller but low cost for the buyer, getting the deal across the finish line.

When Joe Coulombe sold Trader Joe's, he used a one-page contract with non-negotiable terms, including complete autonomy and a commitment to not merge with Aldi. This ensured the buyer was acquiring the unique culture and strategy, not just the assets, preserving what made the company successful.

Public companies, beholden to quarterly earnings, often behave like "psychopaths," optimizing for short-term metrics at the expense of customer relationships. In contrast, founder-led or family-owned firms can invest in long-term customer value, leading to more sustainable success.

For many Italian owner-founders, ensuring the well-being of their long-term employees is paramount, sometimes outweighing the highest bid. In one case, a seller presented three potential buyers to his employees and let them hold a referendum to choose the acquirer, ultimately accepting a lower offer based on their preference.