Enterprises agree to be design partners for three main reasons: they are innovators who want to see technology early, they want their specific needs built into the product, and they want to be part of building a significant new company. It's about influence and access, not just a free trial.

Partnership success hinges on more than executive alignment; it requires buy-in from the partner's technical team. These individuals are on the front lines, understand end-user problems intimately, and can quickly determine if a vendor's technology genuinely solves a recurring issue and fits their existing stack.

Instead of treating consulting and product as separate, CNX uses feedback from services projects to inform new features. A requested customization is often built directly into the core Valence product, benefiting all customers and creating a tight feedback loop.

Smaller companies can win acquisitions even when outbid by larger competitors by championing a collaborative integration. This involves a willingness to learn from and adopt the target company's superior processes, rather than simply imposing the acquirer's own systems, which appeals to founders who value their legacy.

Hexion's decision to acquire technology capabilities rather than building them internally was driven by two factors: speed-to-market and de-risking commercialization. Buying a business with an existing or near-commercial product provides a significant head start and avoids the uncertainty of a long, internal development cycle.

Don't force your sales team to learn and sell a completely new product. Instead, integrate the new capability into an existing, successful product, making it "first" or "default" for that channel. This reduces sales friction and complexity, leveraging established momentum for adoption.

Chandra Dev Mehta explains how Hexion uses M&A to pivot from a traditional chemical company into a 'technology focused chemicals as a service' business. This strategic use of acquisitions helps them escape the challenges of the commodity sector by adding a recurring service and technology layer to their offerings.

Seeking "strategic capital" from customers who have their own innovation funds creates powerful alignment. This model makes the customer an investor, providing direct feedback on product implementation and scaling while allowing them to share in the financial upside, ensuring a mutually beneficial partnership.

Instead of jumping directly to an acquisition, de-risk the process by first establishing a partnership or licensing agreement. This allows you to test the technology, cultural fit, and market reception with a lower commitment, building a stronger foundation for a potential future deal.