Protecting Downside
FiddleheadTx’s Experienced CBO Pushes Upside while Protecting Downside

A seasoned CBO knows never letting up on stoking competitive pressure is key to ensuring transacting on time and at the best value

As transactions are sensitive strategic processes, names of companies and executives in all MotionHall case studies are anonymized.

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 find an opportunity to say, “I’ve seen it all.”

Even though Leslie is 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 bringing a MotionHall proposal to his board, even though he has a number of companies already with him in diligence.

Pushing Back on the CEO

The CEO and board are hoping that those deals are going to transact and like the shape of the conversations. Nevertheless, Leslie brings them a case for making the investment in MotionHall’s Platform and specific tools for the deal. Leslie explains he believes this deal will, “Go to the finish line, however, accessing the OutMatch Suite for this deal is a small investment relative to the value of the deal to our company and to protect our downside.”

“We’re going to continue to drive conversations through alternative target companies to assure optionality and drive inflection in deal value,” says Leslie.

“You never really know everything that might happen at another company. As they say, no deal is done until the money is in the bank! Some of these companies may fall through and impact competitive pressure, influencing the overall deal size.”

Because the deal is not yet done, Leslie feels it is wisest for FiddleheadTx to keep pushing conversations. 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 for closing a transaction.”

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Leslie joined FiddleheadTx about three months ago to work on business development strategy and market development. His years in the industry allow him to quickly recognize the deal cycle dynamics at FiddleheadTx, and he’s kept the MotionHall Platform with him from company to 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 the CEO 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 exposed to a very uncomfortable situation by not protecting our downside. This small investment helps us continue to push the value of the deal on the terms and timeline that we want.”