When a prospect has a strong relationship with a competitor, trying to replace them is often a losing battle. A better strategy is to propose a non-threatening alternative like a limited trial or a beta test. This 'land and expand' approach demonstrates value without forcing the prospect to sever an existing relationship.

Large companies rarely make cold acquisition offers. The typical path is a gradual process starting with a partnership or a small investment. This allows the acquirer to conduct due diligence from the inside, understand the startup's value, and build relationships before escalating to a full buyout.

Instead of building a consumer brand from scratch, a technologically innovative but unknown company can license its core tech to an established player. This go-to-market strategy leverages the partner's brand equity and distribution to reach customers faster and validate the technology without massive marketing spend.

Dollar Shave Club's $1B sale to Unilever wasn't a formal M&A process. It began with a simple dinner where Michael Dubin and a Unilever executive discussed business goals. This shows major strategic exits can originate from informal networking and relationship-building, not just boardroom meetings.

Leonard Lauder proposed buying Bobbi Brown's company during their very first meeting, viewing her as a modern version of his mother and feeling a strong strategic alignment. This shows that when the fit is undeniable, M&A can move with the speed of a personal relationship, bypassing months of formal courtship.

In a competitive M&A process where the target is reluctant, a marginal price increase may not work. A winning strategy can be to 'overpay' significantly. This makes the offer financially indefensible for the board to reject and immediately ends the bidding process, guaranteeing the acquisition.

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.

Approaching a business unit head to acquire their division is like "inviting the turkey to Christmas." They will naturally be defensive about their role and business. The correct strategy for a proactive approach is to engage their superiors, who have a broader strategic perspective on whether the unit is core to the parent company.

To achieve a high-value acquisition, biotechs must first build a credible strategy to succeed independently, creating a position of strength. Concurrently, leaders should keep multiple potential suitors proactively informed on all business aspects—not just clinical data—to facilitate a competitive bidding process when the time comes.