Securing the deal – How not to look like a douchebag when meeting management teams
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May 2024
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Law of informed enthusiasm
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Arrive armed with extensive research and present a comprehensive data pack that shows you understand not just the company, but also the industry landscape. This demonstrates serious intent and respect for the potential partnership. Come with graphs and slides... We make it abundantly clear that we put 100s of hours into the research and are invested... money is fungible, commitment is not.
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Principle of genuine interest
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Convey a sense of longstanding interest in their business type. Your knowledge of the industry should be so thorough that it feels like you've been interested in a company like theirs long before it was on the market. Bringing in experts is a risk, it's a check the box. They want to know that the deal guys get their business. Plus, experts can be off putting to a management team AND so can operating advisors as they will think they are after their jobs or are backups,
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Rule of strategic questioning
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Reserve sensitive or potentially contentious questions for after securing exclusivity. Early meetings should focus on building rapport and understanding, not provoking defensiveness. I once saw an associate kill a deal by asking why they had an above benchmark injury rate. The entire meeting got awkward as fuck and the Associate ended up getting shit canned.
Tactic of diplomatic control
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If a banker or another party makes misguided comments, tactfully steer the conversation back on track. It’s crucial to maintain a positive and focused atmosphere. Bad sell-side bankers like to "demonstrate value," the good ones do it subtly. If it works, let it slide... if not, politely ask the management team "what are your thoughts on that?" This will show the management team you don't blindly listen to Goldman or McKinsey. People just want to be heard.
Doctrine of positive engagement
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Pose questions that are both affirming and reveal your enthusiasm for the company’s growth potential. This not only shows your interest but also your confidence in their future success. I knew a guy that was the absolute GOAT at this. When looking at a packaging business he would say something like: "Wait are you guys fucking telling me that if you buy -any company name - you will own the whole value chain in Asia? (insert generic associate name), who do we know that covers that asset?!?" This is arguably the most important skill of being a deal guy. You have to show that you are on their side but actually add “deal guy” value.
Understand that everybody’s money is green
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Showcase your value beyond capital. For instance, offer to make introductions to potential customers, and be prepared to present concrete examples. This shows your commitment to adding tangible value to their business. Ask them questions that show you're more than just capital - e.g., "We did this at Asset A “would it be helpful if regardless if the deal happens we made intros to this list of customers.” Then show the fucking list that (insert generic associate name) created.
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Law of team harmony
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Brief associates thoroughly, ensuring they stick to the script while also contributing to the conversation. This balance demonstrates both leadership & a collaborative team culture. Do NOT let the Associate kill the deal, but you do have to let him/her talk.
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Rule of relationship mapping
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Plan who interacts with whom, typically aligning seniority levels (Partner to CEO, VP to CFO, Associate to Head of Sales, etc.), but allow for organic interactions. Flexibility here can lead to more genuine connections.
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Principle of extended engagement
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Stay engaged as long as appropriate. Suggest after-dinner drinks or other ways to prolong the meeting, signaling your deep interest and commitment to understanding their business. Tell the wife or boyfriend: "This is my superbowl... it's over when it's over." If the CEO wants dessert, eat it. I don't give a shit about your low carb diet. If you have religious obligations, go to the bar, and order a soda water lime. They will respect it.
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Dress accordingly
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Don't show up to the manufacturing floor in a fucking Hermés tie and Gucci loafers. I cannot tell you the number of times I’ve seen deal drones in deal sleds at a management meeting. People like people that are like them. Don’t show up in clothes that would get you laughed at in a Wisconsin towny bar. Bring prescription safety glasses, custom earplugs, and Kevlar safety shoes. Gotta fit the bill.