2 ms·
It doesn't hurt to be a cynical in this situation. They will want to do "due diligence" which means they discover many valuable things about your product before
by gizmo 13y ago
It doesn't hurt to be a cynical in this situation. They will want to do "due diligence" which means they discover many valuable things about your product before they have really committed to anything. This is certainly to their advantage. They are also likely to make you a low-ball offer if you come across as inexperienced or gullible.
When you engage in any sort of negotiation with M&A guys (who are bound to be much better at negotiating than you are) you really need some sort of leverage or you'll get a raw deal. So unless there are multiple suitors that you can play off against each other this is likely to turn out to be an expensive distraction for you.
- man_bear_pig 13y agoThanks for the insight. I'm pretty sure I can negotiate better than them as my partners and I have done a ton of complex M&A deals in the past so no one is going to fk me over in any way, but I do agree with you that this can be an expensive distraction. I was thinking whether to invite other suitors to play it off each other to make it worth my while and this in turn, can help with the fundraising side with the whole intention of just maximizing the deal structure and terms and amount raised w/r/t fundraising. Thanks so much for your input!