Pain-Solution Acquisition Framework
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A framework for selling your company by understanding and solving an acquirer's pain points. This method focuses on strategic positioning and clear communication during M&A.
Why Companies Buy Other Companies
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Financial Reasons
- Strong revenue/EBITDA performance
- Clear financial upside
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Strategic Reasons
- CEO personal interest or pet project
- New executives wanting to make big moves
- Catching up to surging competitors
- Synergy opportunities (1+1=3)
- Defense against competitive threats
- Access to unique talent/technology
Pain-Solution Discovery Process
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Intelligence Gathering
- Meet with company executives
- Talk to corp dev teams
- Connect with investors who know the company
- Interview founders previously acquired by the company
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Key Questions to Ask
- What initiatives have the most momentum/buy-in?
- What fires need putting out?
- Who's on the chopping block?
- What companies are you most afraid of?
- What would interest your CEO most about us?
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Package Your Story
- Frame capabilities as solutions to their specific problems
- Remove irrelevant details that don't address their pain points
- Create clear, concise materials showing how you solve their issues
- Make it easy to understand your team, tech, and strategic fit
Communication Strategy
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Create Supporting Materials
- Technical one-pagers explaining your technology
- Talent overview presentations
- Strategic alignment memos
- Sample announcement communications
- Clean financial data room
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Make It Easy to Buy
- Turn your company into a "one-click checkout"
- Remove friction points in understanding value
- Prepare all due diligence materials in advance
- Create clear communication channels
Deal Management
- Run parallel conversations with multiple potential buyers
- Maintain momentum - speed is critical
- Keep emotional distance during negotiations
- Remember: One choice is no choice (need multiple options)
- Don't burn bridges - deals often fall through and restart
15:22 - 17:04
Full video: 26:32SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.