In a non-control deal, an investor cannot fire management. Therefore, the primary diligence focus must shift from the business itself to the founder's character and the potential for a strong partnership, as this relationship is the ultimate determinant of success.

Immediately after closing his first PE deal, Chris Huckabee began meeting with other PE firm leaders. He wasn't actively selling, but building a pre-vetted list of ideal future partners. When an unexpected offer arrived 12 months later, he could instantly invite his curated list to bid, creating a competitive process.

To truly understand a potential financial partner, the Chomps team went beyond the supplied references. They found a founder whose company didn't succeed under the PE firm's investment. His positive review of the partner's character, despite the negative outcome, provided the most powerful signal of trust.

A spouse often possesses a unique and powerful intuition about your life and business decisions. Dismissing their opinion is frequently a subconscious way to avoid a truth you don't want to hear. Their perspective can be a critical gut-check against poor choices.

To avoid disastrous partnerships, propose a radical transparency exercise. Each party agrees to hire a private investigator to vet the other, then discuss the findings. This surfaces red flags and demonstrates a commitment to honesty, saving years of potential pain.

To predict the future health of a partnership, intentionally have difficult conversations before any investment is made. If you can't productively disagree or discuss serious problems before you're formally linked, it's highly unlikely you'll be able to do so when the stakes are higher post-investment.

When selecting a private equity partner, Chris Huckabee's primary filter wasn't financial terms, but a simple character test: 'Life's too short. I won't work with jerks.' He prioritized finding positive, aligned partners, using informal settings to gauge their true personality beyond the boardroom presentation.

For crucial hires, Jeremy Allaire offers to meet with their spouses. He believes securing a partner's understanding and buy-in for a demanding role is critical for a candidate's long-term success and stability, making it a key part of his recruitment process.

How a founder interacts with waiters and other service staff provides a candid glimpse into their personality and empathy. This simple observation can be a powerful 'poker tell' for an investor assessing their character.