A company overwhelmed with other priorities or lacking a mature integration function should consider a partnership instead of a full acquisition. Internal capacity to absorb a deal is as critical a factor as the target's attractiveness.
A successful "partner first" strategy proves such strong synergy that the target's leadership and owners proactively seek an acquisition. This fundamentally shifts the negotiation dynamic in your favor, moving from a pursuit to an inbound opportunity.
Don't let an internal champion's excitement about positive signals from a few customers rush an acquisition decision. Stick to the pre-defined timeline and validation criteria to ensure the success is scalable, not anecdotal, before committing to a purchase.
Handing off a strategic partnership to a business unit risks losing sight of the long-term acquisition goal. The Corp Dev team should remain involved as a guide, mentor, and escalation point to keep the original deal thesis on track.
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.
Focusing on a single target is risky. If the deal fails after months of effort, you're back at square one. Maintaining parallel conversations with multiple potential partners ensures pipeline continuity and increases the probability of closing a deal.
Rebuilding requires navigating entrenched processes and "collective memory" while dealing with personnel turnover in key functions. This is more complex than establishing a new function on a blank slate, where processes can be built from the ground up without historical baggage.
In a company with misaligned views on strategy, Corp Dev's first job is to interview stakeholders at all levels (board, leadership, middle management). They must diagnose discrepancies and build a unified inorganic strategy that everyone can rally behind, acting as the central hub.
When immediate acquisition isn't feasible because a target is too early or a PE owner has a longer holding period, a strategic partnership can validate the thesis. This "date before you marry" approach builds relationships and creates a clear path to a future deal.