Acquisitions isn't spreadsheet investing.
It's all about relationships.
Secrets to building trust to buy a business:
1. Meet Belly to Belly
There is nothing like meeting people in person to build trust. You want to fly out to founders and spend time together when you can.
Flights and conferences are expensive, but so are broken deal legal fees.
2. Social Proof
Landing page 101. Add testimonials, reviews, and case studies. Many founders fear you are going to embarrass them post-sale.
We want to show them that their customers will actually be happier with the product and service post-sale.
3. Build in Public
With my writing and our podcast, we talk through how we are thinking about decisions. Transparency builds trust.
There is nothing like living in someone's ear week after week on a podcast to make someone feel like they know you.
4. Give, Give, Give, Ask
We try to deliver a ton of value upfront with our content. We'll continue to offer more guides as well on valuations, processes, etc.
Basically laddering up the value until we get to selling your company to us.
5. Do What You Say You'll Do
Most of the trust-building is before our first interaction. This one is during the deal. Set timelines and meet them.
If you say they'll have the LOI tomorrow or APA in a week, make sure that happens. Over-communicate.
TLDR on Building Trust:
- Meet Belly to Belly
- Social Proof
- Build in Public
- Give, Give, Give, Ask
- Do What You Say You'll Do