Markets will enter a slower, more uncertain period in 2024. IPO activity has cooled, and M&A momentum has slowed. It is against this backdrop that we completed a major transaction valued at $4.4 billion.
Over the past five years, we have built a very strong strategy and execution model, all centered around customer success and productivity, which has and can lead to several years of healthy growth rates. Therefore, when the prospect of privatization became a reality, it was crucial that we found a partner that aligned with our goals.
This became one of the defining moments of my career, culminating in taking SolarWinds private in a $4.4 billion deal with Turn/River Capital. These negotiations honed my leadership principles, improved my judgment under pressure, and enriched my experience.
Negotiation has always been a part of life. Whether it involves a teen’s curfew, the team’s priorities, or the boardroom and the future, every negotiation comes down to the same important principles: credibility, balance, endurance and persistence.
Seven months later, I have had time to think about what made this negotiation a success and what business leaders can apply to deals that are built for long-term success. The positive outcome of this transaction is not the product of one individual, but the product of a highly engaged board and broad leadership team built around a shared vision and disciplined execution.
Integrity begins with restraint
My team and I agree on the importance of Don’t oversell. While this may seem counterintuitive when you’re in the room trying to determine the right price or valuation for your company, it’s an important part of building confidence. The meaning behind the term “no sale” is directly related to the intent in the negotiation. Demonstrate your confidence in the value of the company and your own value as a leader. This may actually lead to better results. Furthermore, no credible buyer will seek to purchase a “perfect” company. So as long as you can adjust the flaws and take the necessary relevant actions to become better, you can unlock more value.
The last thing you want to do is make it difficult for the other person to believe in the value of your services, products, or even business by overselling them. You risk losing value, and a loss of credibility can have lasting effects that extend far beyond the transaction itself.
Another key part of establishing this credibility is identifying a good “sparring partner” at the beginning of the negotiation. For me, that’s Matthew Amico, investment partner at Turn/River Capital. We agreed quickly and emphasized clarity—what we knew, what we were still testing, and where we wouldn’t compromise—to give each other some solid credibility. This mindset shapes how our team approaches every long day (and night) of discussions.
Why endurance and balance are most important at the dinner table
Deal negotiations can often last at odd hours and unpredictable schedules, turning into marathon meetings. These were especially evident in our transactions because everything was done so quickly. I remember that during our negotiations with Turn/River, there were many discussions that went on late into the night, followed by more meetings, each only an hour apart. During these times, keeping going can be a challenge both mentally and physically.
A compressed schedule doesn’t mean cutting corners. Instead, we must acquire comprehensive and timely capabilities—which require endurance and discipline to accelerate decision-making without sacrificing rigor.
The temptation is always there to throw in the towel just to end the meeting. Instead, this is the most important time to hang in there and stay resilient. As you anticipate challenging moments in negotiations, remember the fundamentals of resilience, not just as a leader, but as a human being. Make sure you’re well-nourished, prioritize rest whenever possible, and conserve energy wherever possible because no matter the time of day, you have to stay sharp, focused, and ready to make the best decisions for all parties.
Calmness is a strategic advantage
Emotions can run high during M&A negotiations. Patience wears thin and even seasoned professionals can lose their cool. In the face of heightened emotions, maintaining balance is extremely important.
Achieving this balance can manifest in different ways, whether it’s taking a deep breath during an intense exchange, pausing for a few minutes to refresh your perspective, or even taking a break for lunch—or, in some cases, a late-night snack.
When you achieve this balance, it helps put the collective success of all parties at the center of every interaction. It also allows parties to negotiate responsibly. Frequently asking “What problem do I want to solve?” helps make decisions based on purpose rather than emotion. This allows you to focus on the reasons for the negotiation. If a problem needs to be solved, provide constructive feedback rather than potentially offensive comments.
Turn deals into partnerships
Even after a successful large-scale acquisition, there is still a lot of work to be done. There may still be some emotion left in the negotiations, leaving members on both sides asking themselves who “won” or “lost” the agreement. For a deal to be truly successful, both parties must maintain a careful balance and mutual respect during the post-acquisition phase. They must also keep the above core values in mind during all discussions. This means approaching post-closing decisions with the same rigor and respect that we bring to the negotiating table. It’s important to understand that any acquisition, regardless of size, will not lead to immediate business success. Growth takes time and progress can be incremental, but the long-term rewards make the effort worth it.
Looking back, this deal was successful not because we worked harder or moved faster, but because we maintained balance, and I hope this experience will help other leaders stay disciplined under pressure and align around a shared vision to ensure their deals are successful as well.
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