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.

The first conversation with a target CEO shouldn't focus on the deal. Instead, focus on their personal story to uncover their core motivation—money, legacy, or team success. This "why" provides the key to framing the acquisition in a way that resonates with them and dictates the entire negotiation strategy.

Alex Bouaziz's core M&A principle, learned from his father, is to optimize for long-term satisfaction over short-term leverage. Even when holding the upper hand in negotiations, he structures deals to be fair for both sides. The goal is for both the acquirer and the acquired founder to look back in five years and feel the deal was a great outcome, ensuring better integration and alignment.

To avoid becoming emotionally invested in a deal, it's crucial to institutionalize a "devil's advocate" role. Proactively searching for reasons *not* to do the deal ensures a sober, realistic assessment. The final decision is a calculated risk based on incomplete (e.g., 80%) information.

An acquisition target with a valuation that seems 'too good to be true' is a major red flag. The low price often conceals deep-seated issues, such as warring co-founders or founders secretly planning to compete post-acquisition. Diligence on people and their motivations is more critical than just analyzing the financials in these cases.

Instead of focusing on transactional details, Milliken's M&A lead connects with founders on an emotional level. By understanding their ultimate vision, he frames the acquisition as the fastest path to achieving their dream, a question that has proven highly compelling and effective in closing deals.

While assessed during diligence, the true caliber of a founder—their passion, authenticity, and ability to "run through walls"—becomes starkly clear after the deal closes. This distinction is not subtle; the impact of a truly exceptional founder versus an average one is immediately evident in the business's trajectory.

During diligence, an investable founder is transparent about current risks (e.g., a major customer account is in jeopardy) and presents a mitigation plan. This candor is more valuable and trust-building to an investor than a founder who projects a flawless, risk-free business.

An investment banker argues the hardest part of a deal isn't technical due diligence but managing seller emotions, especially with family-owned businesses. He humorously notes his offices were coincidentally located below psychology firms, reflecting the true nature of his work.