So you finally looked throught the benefis of growing your business through an M&A process (see my previous piece on this here) and are thinking about it in a practical manner. And as it is often the case you know your local playing field well: Barry’s Store is doing well, Megan’s Retail owner is thinking about her retirement, and this New Guy’s Venture hasn’t managed to get popular among the key customers. Obviously, the latter two could be approached with an offer. So how do you do it?
- Do your homework. Try to find out some more specific information on the target’s owner’s plans and on their current situation. Sometimes it’s quite hard to get real data, but at least talk to their clients about the quality of their service or products offered.
- Be extremely careful and gentle and polite. You’re speaking about the business and the dreams of their whole lives. So no conqueror type talk or mocking or feeling superior. And it’s not just about words — it’s about the real attitude when everything matters: your look, your smile, your voice.
- Avoid words like “acquiring” and “buying”. Talk about “mutual possibilities”, “merger”, “continuing the tradition”, or “collaboration”. Especially on the early stages.
- Try to go with a formal email at the start. A formal letter is also possible sometimes but nowadays an email should suffice. This way you can avoid a casual or an angry conversational “No”. Follow up with a call or a meeting in 2-3 weeks.
- Play long term. Your vis-a-vis needs that time to think it over (especially if their business a nice and stable one). Some negotiations take a year or more. So be patient. And polite.
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