A seasoned CBO knows never letting up on stoking competitive pressure is key to ensuring transacting on time and at the best value
Leslie, a 30-year industry veteran and the CBO of FiddleheadTx, has seen almost every way a deal can fail. When talking to other dealmakers at professional parties, he’ll inevitably say: “I’ve seen it all.”
Even though Leslie’s getting close to what feels like a transaction on his latest deal, he knows that no deal is done until there’s money in the bank. He’s considering working with MotionHall even though he has a number of companies already with him in diligence.
The CEO and board are hoping that those deals are going to transact. Nevertheless, Leslie brings to them a case for making the investment in MotionHall’s tools and software. Leslie explains he believes this deal will “go to the finish line however, working with MotionHall is a small investment relative to the value of the deal to protect our downside.”
“We’re going to continue to target inflection and value,” says Leslie. “Some of these companies may fall through and impact competitive pressure, influencing the overall deal size.”.
Because the deal is not yet done, he feels it makes sense for them to keep pushing. This gives FiddleheadTx more control over their critical timeline. “If this deal falls through we'll have another set of companies ready to go. That way we’re less likely to miss our critical date.”
Leslie joined FiddleheadTx about a year ago to work on business development strategy and market development. His years in the industry allow him to recognise that working with MotionHall is an opportunity to get a boost in his process at a critical inflection time for the company. He knows that if the deal falls through with the few companies he has in diligence, it may be challenging to restart on the timeline he wants. As he is new with the company he has not completed adequate market research to quickly launch a new wave.
The CEO says “why don’t we hold off on that investment? It looks like this deal will go through.”
Leslie respectfully explains, “since deals occasionally fall through, we are leaving the company in a risky position by not protecting our downside. A small investment helps us continue to push the value of the deal on the terms and timeline that we want.”
Leslie believes it's right to protect the company's downside while maximizing upside potential.
The names of people and organizations have been anonymized.