Deal Doula Guides Acquisitions
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A Deal Doula helps guide companies through acquisitions and sales processes, providing experienced guidance to maximize outcomes. Here's the key insights from Suleman Ali's approach as a deal doula.
Key Deal Doula Principles
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Be fully transparent about business issues upfront
- Share all "skeletons in the closet" early in the process
- Builds trust with potential acquirers
- Prevents issues from surfacing later in due diligence
- Better to address concerns early than have deals fall apart later
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How to communicate interest in selling
- Don't say outright "no" when approached about acquisition
- Signal openness while maintaining leverage
- Example response: "We've had interest but nothing felt right. We respect you and are open to discussions"
- Get an initial offer from a less desirable buyer to create leverage with preferred buyers
Common Mistakes to Avoid
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Being too secretive about business challenges
- Many "secrets" aren't actually deal breakers
- Buyers care more about strategic fit and financials
- Hiding issues erodes trust when discovered
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Playing hard to get
- Buyers are often looking at multiple companies
- Will focus on those openly interested in selling
- Better to signal genuine interest while maintaining professionalism
Deal Structure Best Practices
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Consider hybrid deals with:
- Upfront cash component
- Equity in acquiring company
- Allows upside participation in combined entity
- Aligns incentives for future growth
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Focus on strategic fit over perfect terms
- Don't get caught up in minor contract details
- Buyers care more about big picture strategic value
- Many negotiation points matter more emotionally than practically
The key is having an experienced advisor who can:
- Provide emotional support during process
- Give objective feedback on offers
- Help navigate common pitfalls
- Build trust between parties
- Guide communications strategy
04:37 - 06:56
Full video: 01:31:48SP
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.