Corp Dev Prioritizes Security

Sam Parr and Shaan Puri share insights about dealing with corporate development (corp dev) teams during company acquisitions, emphasizing the importance of understanding their motivations and psychology.

Key Points:

• Corp Dev Representatives' Primary Motivations:

  • Job security is their main priority
  • They want to look good internally
  • They're trying not to "fumble the bag" rather than maximize deal value

• Relationship Dynamics:

  • Corp dev acts as a router/project manager, not the decision maker
  • They're helpful but aren't the final authority
  • They create intentional separation between sellers and real decision makers

• Deal Structure:

  • Real decisions ladder up to senior executives
  • Companies design the process to keep sellers from accessing true decision makers
  • This bureaucracy gives the buying company negotiating leverage

• Successful Navigation Strategy:

  • Make corp dev look good internally
  • Make the process easy for them
  • Help them present well to their superiors
  • Understand you're selling to a person within the company, not the company itself

• Critical Understanding:

  • Different incentives between sellers and corp dev
  • Sellers are trying to get their first big exit
  • Corp dev is managing one of many transactions
  • This misalignment affects negotiation dynamics

• Key Advice:

  • Find out who the real decision maker is
  • Understand what motivates them personally
  • Figure out the "fire under their ass" driving the acquisition
  • Align your pitch with their internal narrative