Make the first conversation count

The owner is friendly. The business sounds promising. But you still don't know whether it's the right opportunity. A good first conversation should leave you with fewer assumptions, not just a better feeling. In Module One, we parked our fictional company, Harbor Field Services. Its teaser matched the buyer's basic criteria, but customer dependence, management coverage, and earnings adjustments still needed clarification. Park does not mean stop learning. It means do not move the opportunity forward until the important gaps are addressed. This module is about validation: checking whether a claim has enough support to guide the next decision. Early validation is not full due diligence. You are deciding whether a deeper conversation is justified, not whether to buy the company. Start with a one page contact brief. Write three things: why this business fits, what is actually known, and what you need to learn. For Harbor, the fit is commercial maintenance in Georgia. The teaser reports one point eight million dollars in adjusted EBITDA. The questions concern its largest customer, the owner's daily responsibilities, and the adjustments behind that earnings figure. Choose the right contact route. In this fictional continuation, an adviser represents Harbor and arranges a buyer owner call. Work through that agreed process. Explain who you represent, why the business appears relevant, and what you hope to understand. Do not imply funding, authority, or commitments you don't have. An opening could sound like this: "Thank you for making time. Commercial maintenance in the Southeast fits our acquisition focus. We'd like to understand your priorities and how the business operates, then decide together whether another conversation would be useful." Begin with the owner's goals. Ask: "What would a good outcome look like for you, and what would you want to protect?" Suppose the owner says, "I'd like to step back next year, but keeping the team matters." Record that as a stated preference. It is not a promise to sell or an agreed transition plan. Next, test customer concentration: how much revenue comes from one customer or a small group. Harbor's teaser says its largest customer accounts for thirty two percent of annual revenue. Ask what that customer buys, how the work is ordered, and who manages the relationship. "They've been with us for years" is useful context, but it doesn't establish future revenue. Ask which records can support the answer through the agreed information sharing process. Then examine owner dependence: how much the business relies on the owner personally. Instead of asking, "Is there a good team?", ask, "If you were away for two weeks, who would price jobs, manage delivery, and handle that largest customer?" Suppose Harbor has an operations manager, but the owner still approves pricing and owns the key relationship. That is a more precise picture, not proof that the transition is solved. Finally, keep answers and evidence separate. Put each important claim beside its source, the evidence still needed, and the next action. The owner describes reliable customers; the buyer still needs the relevant revenue history and contract information. The teaser reports adjusted earnings; the buyer still needs an explanation and support for those adjustments. Do not change a label from reported to supported merely because the call went well. Close with one agreed next step. For Harbor, request the available customer revenue summary and management responsibilities through the adviser. Assign someone on the buyer's team to review them and set a review date. Keep Harbor parked while those decisive gaps remain.

A useful conversation ends with a clearer decision, not a forced yes. Before your next call, write three questions, the evidence needed, and a follow up owner. The next document depends on the process. An indication of interest sets out a preliminary price range and assumptions. In an adviser run auction, it may be requested before a management meeting. Direct negotiations may skip it. A letter of intent sets out more developed proposed terms. Neither means the deal is complete. Harbor stays parked until its decisive gaps are addressed. Next, Module Three: from an indication of interest to a letter of intent.