What is your formula for sealing a deal?

David Gowdey

Managing Partner, Jungle Ventures

In the venture capital space, there are two sides to the coin – investment and exit. At the time of the investment, it is much more about creating a solid relationship and ensuring that you’re aligned with the founders, both over the short and long term. Having a strong partnership from the outset will hopefully ensure a constructive working relationship going forward. Like any relationship, it’s about building trust, listening, and understanding what the founder wants to achieve and how you can help them get there. When it comes time to exit investments, which in South-Sast Asia tend to be via trade sales, then the secret for closing the deal really comes down to understanding the buyers’ specific needs and how your portfolio company can help them achieve their goals. Knowledge of the buyers’ business, timing and really understanding what is motivating them are all key elements.

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Jason Humphries

Co-Founder, Suu Balm

Successful companies are built by sealing the right deals, so it is essential that you find a way to collaborate with a partner who brings complimentary capabilities and credibility to the relationship - this is especially true for startups that don’t necessarily have deep pockets. In order to agree on the partnership, it is important to take the time to really uncover the motivations of your prospective partner. Avoid rushing into a deal. Understand what everyone’s expectations are, get down to details and craft agreements that work for both sides to ensure it’s a win-win for all those involved. Then, when you go to market, you will be bringing a much stronger proposition than you could have managed by yourself, which will create more value for your business going forward. Finally, ensure you model and check your numbers rigorously.

Shailesh Naik

CEO, MatchMove

Qualify: As early as possible, qualify the customer or investor in terms of your objective. Evaluate their goals and align them with your own strategy. Qualify in terms of their ability to execute their part, don’t get dazzled by their promises of what they can do, look instead at what level their organisation is. Addressing doubts early in the dialogue leads to a stronger partnership later. Patience but enthusiastic: Understand the other side have their own priorities and deals do not move as fast as you hope. Balance sustained interest and losing interest. Ensure you maintain quick responses and regular follow-ups once you have sufficiently qualified a potential partner. Walk away quickly and firmly from “bad businesses”: Qualification according to your business-driven criteria will filter out deals that could be difficult later. Avoid closing any and every deal. Quality over quantity improves your credibility for your next deal.

Sean Murphy

Global CEO & Executive Director, Procurri Corporation

Understanding your prospects’ needs and motivations is key to sealing the deal. Before you can even convince your prospects that your solution is uniquely the best fit, you have to first understand their “decision drivers”, that is, what do they want and need from this deal. You should also be able to identify what the decision-maker is motivated by – are they attracted by the incentives you are offering, or are they just trying to ensure sustainability of the business. Thereafter comes an integral part of closing the deal, which is often overlooked by many dealmakers. Never assume that your prospects will see how all the jigsaw pieces come together. You have to show them how and why your offer on the table connects the dots. When all the criteria have been met, do not delay in asking for the contract.

Guillaume de Marcillac

Co-CEO, FASTBOOKING

My successful approach to sealing a deal is one that is crafted with simplicity and transparency. Avoid the small prints, caveats or long sentences. Keep it concise and state clearly what is being pursued by both parties to achieve those ultimate objectives. My fundamental approach follows: “less is more”. It is far more complicated to craft a condense and comprehensive document as compared to a long and convoluted one. By doing so, the greatest driver is to listen and even more importantly understand your partner’s requirements and objectives so as to align their goals with yours. To realise this, you need to adapt and embrace your partners’ local culture and sensitivity. Our strength and expertise in Asia give us a strategic edge in forging deep and strong bonds with our partners.

Compiled by Rumi Hardasmalani (rumih [at] mediacorp.com.sg)