How Networking Accelerates M&A Success for Founders

The landscape of mergers and acquisitions (M&A) is significantly influenced by the visibility and networking capabilities of company founders. Two founders in the tech sector, both with strong products and early revenue, illustrate this principle. While one CEO, who had effectively raised capital and was beginning to show traction, struggled to attract interest when it came time to sell, the other, a well-known figure in the industry, received multiple bids within weeks. This disparity highlights the critical role that relationships play in M&A processes.

Visibility Enhances M&A Opportunities

The key difference between the two founders was not the quality of their products or their financial profiles, but rather the relationships they had cultivated. The more visible CEO was a regular speaker at conferences and an active participant on platforms like LinkedIn. As a result, when it was time to pursue a sale, potential buyers were already familiar with him. The initial outreach was warmer, and conversations progressed quickly, easing the path for internal buy-in from decision-makers.

According to strategic adviser Itay Sagie, well-networked CEOs tend to attract interest earlier in the M&A process. Buyers who are already acquainted with a founder’s reputation and strategic vision are more likely to engage without hesitations. Conversely, companies helmed by technically proficient but lesser-known founders often require a longer ramp-up period. This can involve increased diligence and effort to convince potential buyers of the company’s value.

Building Trust for Long-term Success

Acquirers evaluate more than just products and financials; they also consider leadership, cultural fit, and long-term integration potential. When a CEO is recognized as a credible and insightful voice in their sector, the evaluation process becomes more straightforward. This established reputation fosters trust, enabling early conversations that can evolve into serious offers.

For founders, focusing on networking and building visibility is essential. While not every founder possesses a natural inclination for public speaking or brand building, these tasks should not be viewed as secondary responsibilities. For CEOs of companies aiming to grow, secure funding, or explore strategic exits, cultivating relationships is vital.

Investing time in relationships with investors, potential customers, and partners creates long-term strategic value. Visibility does not necessarily require constant public appearances or daily social media posts, but there should be a deliberate effort to enhance credibility and access within the industry. For founders reluctant to prioritize visibility, enlisting a well-known operator may be a viable alternative.

Ultimately, the value of a company is shaped not just by its technology but by the individuals telling its story and the audience receiving it. As Itay Sagie notes, the narrative surrounding a company can significantly influence M&A outcomes, underscoring the importance of building a robust professional network.

For more insights into strategic growth and M&A, visit SagieCapital.com or connect with Itay Sagie on LinkedIn.