Positioning for M&A

Positioning for M&A isn’t transactional – it’s simply good business.

Too many founders and boards treat M&A as an afterthought, a capitulation, or a means to a recently prioritized end. This reactive mindset is exactly what makes M&A hard- and why outcomes are often mediocre.

But beyond that, positioning yourself for M&A early on is simply good business, regardless of whether or not you intend to sell. Think of it as earning buy-in from those with the power to shape your industry, not just your exit. Building trusted relationships, evangelizing your story, and gathering intel on incumbents and competitors are table stakes for top-decile CEOs. This strategic posture generates opportunity, goodwill, and momentum.

Generating buy-in, especially when it results in being acquired for the value of your vision, not just your assets, requires strategic, not transactional, thinking. Here’s what that looks like:

→ You’re positioned early, not scrambling late. Engage when you hit the Traction Phase (I gave up on the Series letters a while ago). When your tech is de-risked and there’s early commercial validation, that’s the moment to start building trusted relationships. It takes years-and it compounds.

→ You’re wearing the CEO hat, not just the founder one. Founders are often emotional and insular about their business (a strength-until it’s not). A strong CEO brings emotional detachment and navigates M&A nuance. Let your sales warriors battle in the arena while you sharpen your diplomacy and connect with incumbents- even competitors. These ties often yield intel, partnerships, and other unexpected upside.

→ You’re doing BD yourself, not outsourcing. You can hire a BD lead (I once was that guy- story for another time), but you can’t outsource relationship gravity. Leaders want to deal with leaders. Understand your potential partner’s vision. Empathize. Seek alignment. That level of connection is reserved for expert CEOs.

→ You’re selling stories, not assets. Assets get asset pricing. Story and vision yield equity valuations. Work with investors and advisors who know how to shape narrative. Think Stradivarius, not violin. Or as Hany loves to say, sushi, not cold dead fish.

→ You’re building, not burning bridges. Arrogance in the ecosystem closes doors – often before you even know they exist – and invites schadenfreude. Humility and real relationship-building pay dividends. Karma’s a b*tch.

Accomplishing this “bought” posture takes maturity and perspective. It means being real, staying curious, and stepping outside your comfort zone. Done right, and with the right warm intros, it’s both natural and rewarding. Helping my portfolio founders get there is one of the most gratifying parts of my job.

Companies are bought, not sold. Great CEOs are magnets, not merchants. Connectedness and respect breed opportunity and optionality. Play the long game.