Due diligence is the pivotal moment when buyers put your company under the microscope. It is infinitely more painful if you are unprepared and, if done poorly, it can lead to the finish line being moved or disappearing completely.
Creating competition among buyers helps capture the full value of what you've built.
Many founders confuse coordinating inbound interest with running a competitive process. Even if you have multiple buyers reaching out, there is no guarantee these represent the best buyers or that they will actually close. True competition means engaging the entire market—potentially hundreds of qualified buyers—not just the few who happen to find you.
A genuinely competitive M&A process involves several critical elements that most founders don't fully appreciate:
Buyers benefit enormously from lack of competition in the buying process—which is exactly why they will often pressure you to work exclusively with them. They understand supply and demand dynamics because most are serial acquirers who purchase multiple companies per year. You, as a founder, likely go through this process only once or twice in your lifetime.
On the other hand, we regularly see buyers in competitive processes improve their offers materially—increases that would not happen in a non-competitive environment.
Competition impacts more than just price. It also drives better transaction structure, including:
Due diligence is the pivotal moment when buyers put your company under the microscope. It is infinitely more painful if you are unprepared and, if done poorly, it can lead to the finish line being moved or disappearing completely.
If you would like to speak to someone, get in touch by using our contact form.
12100 Wilshire Blvd
Los Angeles, CA 90025
23 Berkeley Square
London W1J 6HE
Europaplatz 2
Berlin 10557