Deal Doula Guides Acquisitions

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

  • 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
  • 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

  • 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
  • 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

  • Consider hybrid deals with:

    • Upfront cash component
    • Equity in acquiring company
    • Allows upside participation in combined entity
    • Aligns incentives for future growth
  • 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
SP

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.

WebsiteTwitter
Host
Restaurateur
E-commerce