Direct-to-founder sourcing requires comfort with the fact that most conversations won't lead to a deal. This work isn't wasted; it builds a network of trust and market intelligence. Founders are interesting people, and treating every interaction with respect builds long-term karma and reputation.

Don't wait until you want to sell to think about acquirers. A key strategy is to treat potential buyers as a target audience. Actively market your company's narrative and successes to the specific people who could eventually buy you, drastically speeding up a future M&A process.

To source proprietary hybrid capital deals, avoid the capital markets teams at PE firms, as their job is to minimize cost of capital. Instead, build relationships directly with individual deal partners in specific industries. This allows you to become a trusted, go-to provider for complex, time-sensitive situations where speed and certainty are valued over price.

To win highly sought-after deals, growth investors must build relationships years in advance. This involves providing tangible help with hiring, customer introductions, and strategic advice, effectively acting as an investor long before deploying capital.

With a PE-owned target, engage its leadership on operational partnership details while simultaneously discussing the long-term acquisition case and financial horizons with the PE owners. The Corp Dev leader must orchestrate these parallel, distinct conversations.

For proactive deal sourcing, the initial contact is a high-stakes sales call. F5's Andy Cohen invests 2-10 hours researching a target before the first outreach. This deep dive into podcasts, blog posts, and mutual connections enables a substantive, flattering conversation that builds immediate rapport and credibility.

Venture capitalists are experts at their own game; you won't beat them. Instead of trying, create your own by setting the terms. For instance, define a compressed two-week fundraising period to create scarcity and prevent them from dragging out the process, shifting the power dynamic in your favor.

Founders who wait until they need to sell have already failed. A successful exit requires a multi-year 'background process' of building relationships. The key is to engage with SVPs and business unit leaders at potential acquirers—the people who will champion the deal internally—not just the Corp Dev team who merely execute transactions.

A HoldCo leader with founder experience has an 'unfair advantage' in sourcing proprietary deals. Direct outreach from one founder to another builds a level of trust and rapport that purely financial buyers or junior associates cannot easily replicate.