You Only Get One Chance to Make a First Impression: Fireside Chats in an M&A Process

In an M&A process, your one chance to make a first impression on prospective buyers is during the fireside chats. Before the fireside chat, buyers sign an NDA. They also get your Confidential Information Memorandum (CIM) and Quality of Earnings (QOE). I took part in fireside chats with potential buyers during our M&A process. Here are my ten tips.

1. Know what to expect. View fireside chats as a casual one-hour meeting akin to meeting over coffee. Not too formal, but not too informal.
2. Know your audience. Research who you will meet. Also, understand the type of buyer you are dealing with. Is it a strategic, private equity, or private equity-backed strategic? Different types of buyers have different objectives.
3. Confirm the materials given to potential buyers. Know what your banker has shared before the fireside chat. This includes the CIM and QOE. This helps you anticipate buyers’ questions. It also gives you context for why they might ask them.
4. Prepare your presentation deck. Your banker will assist in creating a deck for your fireside chats. Yet, it’s important to review and edit it to make it your own.  You will be presenting the deck, not your banker, during the fireside chat.
5. Practice with your banker. We did this many times before our first fireside chat. Overprepare for your first one. Each one gets easier and almost becomes second nature as you do more.
6. Have a quarterback. This way, one person leads the conversation. It helps avoid confusion about who answers questions. In my case, I was the QB and passed the ball to my teammate.
7. Be genuine and authentic. No scripts or memorization. We kept it natural and spoke from our hearts while being ourselves.
8. Keep it conversational. Less of a presentation. Not too regimental. Keep the conversation fluid. A good conversation helps create a real connection with the buyer.
9. Remember that it’s a two-way street. It’s like a first date. Both parties need to check for a good cultural fit. While the buyer is assessing you, you are also assessing the buyer.  Can you trust each other? Do you like each other?  Can you work well with each other? People want to work with good people whom they like and trust.
10. Earn trust. Many buyers are skeptical, as they should be. So, be conservative and realistic about your business’s financial future. Add some conservatism to your forecast and discuss it in your conversation. Being conservative and realistic creates trust.  Trust is key.

By definition, you can never make more than one first impression on the same person. A fireside chat is the first impression you will make as a seller. Your first impression can impact whether you get a Letter of Intent (LOI) after the fireside chat. Make it a great one.