A founder gets an inbound.
A real one.
Strategic buyer. Serious interest. Not a tire kicker.
They grab coffee. It goes well. Really well.
Then the buyer asks:
“What are you looking to get for the business?”
The founder pauses… and answers.
Let’s say they say $10 million.
The buyer nods.
A few weeks later, a deal shows up at $20 million.
Sounds like a win, right?
It’s not.
Because the only number that matters is the one you never got to.
Companies Are Bought, Not Sold
Most founders think exits are driven by readiness.
Revenue. EBITDA. Growth.
But deals don’t start there.
They start with interest.
And that interest often shows up as something deceptively casual:
An email.
A DM.
A “we’ve been watching you” message.
In M&A, there’s a name for this:
UFOs — Unsolicited Offers.
And they’re dangerous.
Because they feel like validation.
But they’re actually a test.
What a UFO Can Cost You
Here’s the trap:
A single buyer shows up.
You engage.
You answer questions.
You start building momentum.
But without realizing it, you’ve already lost leverage.
Why?
Because you skipped the one thing that creates value in M&A:
Competition.
When there’s only one buyer:
- There’s no price discovery
- There’s no pressure
- There’s no urgency
And the moment you give them your number?
You’ve anchored the entire conversation… against yourself.
The $10 Million Mistake
Going back to that founder:
They thought they won.
They doubled their expectation.
But what they didn’t see:
- There was no process
- No competitive tension
- No indication of what other buyers would pay
That $20M deal?
It might have been $30M.
Or $50M.
Or structured in a way that changed their life completely.
They’ll never know.
Because they answered too early.
Never Tell a Buyer Your Number
This is one of the most expensive mistakes in M&A.
Founders think they’re being transparent.
Buyers see it as data.
And they use that data to:
- Anchor negotiations
- Frame value discussions
- Control the narrative
The right answer to “What’s your number?” is simple:
“We’re focused on finding the right partner and running a process to determine fair market value.”
That’s it.
No number. No range. No hint.
Because the moment you speak first…
You lose.
The UFO Framework: How to Handle It the Right Way
Unsolicited offers aren’t bad.
They’re signals.
But they need to be handled correctly.
Here’s the shift:
1. Slow It Down
Urgency benefits the buyer, not you.
2. Don’t Anchor
No numbers. No expectations. No shortcuts.
3. Create Optionality
Even if you like the buyer—especially if you like the buyer—introduce competition.
4. Run a Process
Deals get better when they’re structured, not reactive.
The goal isn’t to reject the UFO.
It’s to convert it into a process.
Why James Can Count Solo Founder Successes on One Hand
There’s another uncomfortable truth here:
Most successful exits don’t happen alone.
The myth of the solo founder is just that—a myth.
Because building—and exiting—a company requires:
- Emotional resilience
- Strategic perspective
- Operational discipline
And one person rarely brings all three at scale.
Co-founders aren’t a bonus.
They’re leverage.
They challenge decisions.
They absorb pressure.
They prevent blind spots—especially in moments like a UFO.
The Only Thing Worse Than Not Raising Enough
Founders worry about running out of money.
They should.
But there’s a quieter risk:
Raising too much.
Too much capital:
- Masks inefficiencies
- Kills discipline
- Encourages bad decisions
The best companies don’t just raise capital.
They respect it.
Because discipline—not dollars—is what makes a business valuable in the eyes of a buyer.
The Focus Principle: Great Founders Get Narrower
As companies grow, the temptation is to expand.
More products.
More markets.
More bets.
But great founders do the opposite.
They narrow.
They double down on:
- What works
- What scales
- What buyers understand
Because complexity kills clarity.
And clarity drives valuation.
This Is Still a Human Game
For all the talk of multiples, metrics, and models…
M&A is still human.
It’s trust.
It’s perception.
It’s psychology.
The best dealmakers don’t just understand finance.
They understand people.
Why someone hesitates.
Why someone leans in.
Why someone walks away.
That’s why, in a deal room, a background in human behavior often matters more than an MBA.
Because deals don’t close on spreadsheets.
They close on conviction.
Final Thought
Most founders don’t lose value in the deal.
They lose it before the deal ever starts.
In a coffee meeting.
In a casual answer.
In a number they should’ve never said.
UFOs feel like opportunity.
But without structure, they’re expensive.
Watch the entire episode here
Be Ready Before the Buyer Shows Up
The difference between a good outcome and a great one?
Preparation.
With ShareVault, you can:
- Run a structured, competitive process
- Control how buyers access information
- Eliminate friction during diligence
- Protect leverage when it matters most
Because in M&A…
You don’t get paid for interest.
You get paid for process.
Thinking about selling—or already getting inbound interest?
Make sure you’re ready before you respond → [
