We spoke to couple of Indian product founders (who went through M&A or strategic investments) and friendly lawyers to extract advice on tips that they will keep in mind when making their next deal. Two key things emerged
- Unlike a product sale where the value to different buyer is roughly the same, in case of companies dynamics are different. Here the value is completely based on what is perceived by the buyer much like art. Moreover price communication involves negotiation and it is a function of both the scarcity and perceived utility of the buyer.
- Every transaction is unique and complex, complexity is one of the biggest deal killer so some forethought and operational hygiene readiness goes a long way in winning or losing a deal.
While it is hard to cover a generic playbook for point #1, some forethought on operational structure and preparedness goes a long way in increasing the odds of making deals happen. The deck captures many of these operational points.