Buy Button Principle

The Buy Button Principle focuses on organizing your company to make it as easy as possible for potential acquirers to purchase it, similar to Amazon's one-click checkout experience.

Core Components of the Buy Button Principle

• Turn your company into a "giant buy button" for acquirers
• Have everything organized and precise
• Be ready to answer all questions immediately
• Create a comprehensive data room before receiving term sheets

Key Strategies for Successful M&A

• Optimize for time to close

  • Deals can fall apart due to external factors (accidents, economy changes, leadership changes)
  • Faster closing reduces risk of deal complications

• Consider acquirer credibility factors

  • Board-approved deals have higher likelihood of closing
  • Public companies with board oversight are more reliable than individual founders
  • Corporate bureaucracy can actually be beneficial for deal certainty

• Transparency with potential buyers

  • Disclose all potential issues upfront
  • Share "skeletons in the closet" early in serious discussions
  • Builds trust and prevents late-stage deal complications
  • Better to have buyers walk away early than discover issues later

Data Room Best Practices

• Organize all company documentation thoroughly
• Have immediate access to requested documents
• Prepare for extensive due diligence
• Consider professional help for organization (like Edie's role)
• Be ready for meetings with multiple stakeholders:
  • Company representatives
  • Lawyers
  • Accountants

Deal Evaluation Factors

• Don't just take highest offer
• Consider:
  • Likelihood to close
  • Team compatibility
  • Timeline expectations
  • Deal structure
  • Post-acquisition integration plans

The key is making the acquisition process as frictionless as possible while maintaining transparency and proper documentation.