Before the Decision to Sell: Why the Relationship Comes First in M&A
Article Summary
Companies often wait to engage with potential acquirers until they’re ready for a formal process. But relationships that start well before that point, with no pressure to transact, tend to build the trust and understanding that shape decisions when the time is right. In this article, Elliot Yunger, SVP and Head of Corporate Development at Lumine Group, shares what those early conversations look like and why they matter.
Perspectives from Corporate Development
Contributor
Elliot Yunger
SVP, Head of Corporate Development · Lumine Group
How COMPANIES build clarity on acquirers before a transaction is considered
For many companies, the first real conversation with a potential acquirer happens only once a sale is already being considered. At that point, the conversation is shaped by the decision itself.
Starting earlier, before either side is thinking about a specific outcome, gives both sides room to ask questions, compare notes, and get a real sense of who’s across the table.
At Lumine Group, where we focus exclusively on acquiring and growing communications and media software companies, this is a pattern we see often: relationships that began years before a sale was on the table, when neither side had a deadline in mind and both simply had time to understand one another.
Elliot has had these conversations with founders and business leaders across the industry for years. We asked him what those early, unhurried conversations tend to look like, and why talking about M&A long before a company is ready to sell can still shape how things eventually go.
The conversations that happen before a sale is on the table
For business leaders, selling their business is one of the most significant decisions they’ll make. It shapes what happens to employees, customers, and what they’ve spent years building. Given what’s at stake, individuals and teams who approach that decision with confidence are often the ones who’ve already thought through what matters. Usually that means what they’d want from an acquirer, what they’d need to protect, and how a transition would work in practice.
Elliot describes what he typically hears:
“Company leaders tend to engage many years before they are looking for a sale. We want to make sure they’re fully comfortable with who we are, the people in our business, and what life with Lumine could look like for their company and people.”
Conversations outside of a transaction create space to ask questions that are harder to raise once a process is underway: How does this acquirer actually operate? Who are the people involved, and what do they care about? Without the weight of a live deal, those questions tend to get more honest answers.
What timing could look like
These conversations don’t need to follow a defined process, and they don’t require commitment from either side. More often, they happen through the normal course of the industry, from introductions, events, or simply staying in touch over time.
For Lumine Group’s Corporate Development team, that often means meeting and connecting with company leaders well before a transaction is being considered. Collab’s Founder described how that familiarity made a difference when a transaction did eventually come together. He had already brought his management team into the conversation, and both sides arrived at the process with a clearer sense of what they were working toward.
The nature of the software adds another layer. Customers rely on continuity, from uptime to integration stability to ongoing support, and that reliance extends the stakes beyond the company leader to the people who depend on the business day to day. Knowing who you’re dealing with before a process begins is part of carrying that responsibility well.
What company leaders typically explore in initial conversations
- How the business would operate over time. Learning more about how continuity of leadership, brand, and product direction would be protected, or how changes would be approached.
- How decisions get made. Whether the business would operate autonomously (at Lumine, all companies do) or if the acquirer would take a more hands-on role in running it.
- What customers experience. How expectations remain stable through and after a transaction.
- How teams are supported. How people are retained, how roles evolve, and building an environment where the existing culture can continue to develop.
- How the acquirer reads the industry. Whether their view of communications & media trends matches the company’s own.
Why familiarity changes the process
Elliot points to a founder he had stayed in touch with over a number of years, through occasional check-ins and industry interactions, without any formal discussion around a sale behind them.
When that founder decided it was time to retire, he reached out directly. By that point, he had already thought through what he wanted for the business, his team, and his customers, and had a clear sense of who he wanted to speak to first.
From Elliot’s perspective, what stood out wasn’t just that moment, but the history behind it. By the time the conversation turned to a transaction, Lumine wasn’t a name the founder needed to look into. It was one he already understood, with a perspective formed over years of interaction.
Elliot puts it directly:
“Often when we enter into a process with a company, it grows out of years of dialogue. We’ve usually talked with their teams about the business, the products, and how they’ve evolved over time. By then, they also have a clear sense of who we are and what it might look like to work with us at Lumine.”
What this means for company leaders today
Not every conversation with a potential acquirer is about preparing to sell. They can be a way to stay informed on the landscape, on who potential acquirers are, and on how different approaches compare over time. There’s no requirement to act on any of it. Having different perspectives early can make it easier to navigate decisions later, if and when the time comes for a business sale.
Companies who take this approach tend to stay engaged with the broader industry. They look beyond their own business and use conversations, including with acquirers, as one way to understand how the market is evolving.
Lumine Group’s Corporate Development team is available for exploratory conversations with founders and management teams across the communications and media software ecosystem. Get in touch to learn more.
