Building Rapport and Understanding Needs in M&A Deals

About the Episode

The successful completion of an M&A transaction often comes down to the rapport that is built between a buyer and seller and how that impacts the ultimate deal structure. Investor Matt Bodnar offers rapport-building strategies and insights into the finer points of crafting a transaction’s structure. He talks about the variables that go into an LOI, understanding and prioritizing the seller’s objectives, goals, and desires, and how this knowledge influences the various components of the final deal structure.

“Deal structure is a toolkit of options that you can use to bridge the gap in evaluation between what a seller wants and what a buyer wants.”

Matt Bodnar

What You’ll Learn

• Ways to Build Rapport: Tips on how to do this through actively listening, finding common interests, and understanding a seller’s goals and pain points.
• Different Perspectives: The value in understanding the seller’s needs, desires, motivations, and objectives in order to structure a deal that works for both parties.
• Deal Structure Components: An overview of components including cash, earnouts, seller notes, and rolled equity, that can be used flexibly to bridge valuation gaps. 
• Influences on Deal Structure: Examples of what can influence deal structure and the impact of different circumstances.

Topics Covered

Want More? Related Resources: 

• M&A Basics | The Letter of Intent
• M&A Seller Financing: A Complete Guide
• Net Working Capital (NWC) for M&A – A Complete Guide
• M&A Seller Financing: A Complete Guide

Meet Our Guest

Matt Bodnar

Founding Partner, Eidolon Capital | Nashville, Tennessee

Matt Bodnar, a “Forbes 30 Under 30” alumni and partner in multiple “Inc Fastest Growing Companies,” is a private equity sponsor who has scaled businesses across multiple industries. Matt is the Founder and Managing Partner of Eidolon Capital, and he is the major investor and Chairman of Ozark River Manufacturing, ProRack Systems, Fresh Technology, Inc., and Highland Industrial Staffing. He is also the Creator and Host of The Science of Success podcast.

LinkedIn: https://www.linkedin.com/in/mattbodnar/