Student Status Opens Doors

Jeremy Giffon shares insights about negotiation, deal-making, and business acquisition strategies from his experience as the first employee at Tiny, which turned $5M into $500M through strategic acquisitions.

Key Points:

• Early Days Approach:

  • Downloaded legal templates from Legal Depot
  • Fired out LOIs (Letters of Intent) quickly and frequently
  • Lack of experience allowed for faster, friendlier negotiations
  • Used basic analysis rather than complex financial models

• Deal Analysis Philosophy:

  • Quantitative analysis becomes commoditized - everyone can do basic financial modeling
  • Focus on first principles rather than complex spreadsheets
  • Look for obvious value: "Can we make 20-30% cash per year?"
  • Price should be the due diligence

• Negotiation Strategies:

  • Key Principle: It's not you versus them - it's both parties versus the problem
  • Effective Tactics:
    • Stay silent after making an offer
    • Let people negotiate against themselves
    • Use mute button on calls to maintain silence
  • Best Question: "What would need to be true?" to make a deal work

• Deal Assessment:

  • Look for basic metrics: revenue, earnings, immediate improvement opportunities
  • Focus on getting prices that are "no-brainers"
  • Trust your gut on character issues
  • Watch for red flags:
    • Flashy behavior
    • Dishonesty
    • When experts raise concerns

• Cold Email Strategy:

  • Most asymmetrical trade opportunity available
  • Key requirement: "Have the goods" when you show up
  • Leverage student status - most people will meet with prepared students
  • Downside is minimal - usually just no response