Marketing to Founder-Sellers
Of all the potential audience groups a private equity marketing group could consider, founder-sellers could arguably require one of the more unique and well-thought-out approaches.
Understanding the unique mindset of founder-sellers is crucial for private equity firms looking to attract them and stand out from other PE firms competing for their business.
Here, we delve into effective marketing strategies tailored to resonate with founder sellers.
Marketing Strategies Tailored to Founder-Sellers
Founder sellers, in this case, refer to individuals who have built and grown a business to a significant scale and may have total decision-making power concerning any sort of major decision, such as a monetization event and acceptance of outside capital.
What sets this audience apart is their dual role as both the controllers of their company and individuals deeply intertwined with their business or entity.
Compared to potential investors, they often have a profound and personal connection to their enterprise.
For them, the decision to sell a portion or entirety of their business goes beyond standard financial and market considerations; it frequently delves into a complex, multi-faceted, and sometimes even emotionally charged resolution.
Humanize Your Brand
In reality, every audience you speak to will value authenticity and human connection.
Still, for founder-sellers in particular, it could be the single most important factor in differentiating yourself from other firms when similar offers are presented.
In many cases, founder-sellers engage investment banks to manage the transaction alongside them, often involving a competitive bidding process, with various parties vying for the opportunity to invest or acquire.
As founder-sellers navigate their options, they are looking for a team that offers genuine collaboration and considers the long-term implications of the potential partnership.
They hope to select the right firm that makes the most financial sense and is also a partner they trust to preserve the legacy of their business and, oftentimes, the autonomy of the current leadership.
When we work with a firm that focuses on founder-seller relationships, we encourage using approachable, deferential language and relatable imagery.
We also assist with developing founder-seller-specific materials, such as a dedicated web page, one-pager, or presentation that speaks directly to this audience and answers their frequently asked questions.
A notable example from Darien Group’s previous work is Endeavor Capital, a Portland-based firm that invests in family- and founder-owned businesses in the American West.
Through our discovery process, we further established their core messaging tenets of integrity, partnership, and dedication to authenticity.
Darien Group designed a website that featured imagery of the American West alongside casual team photography, proud displays of Endeavour partnerships, and rich colors, tones, and font to tell their story seamlessly.
Their newly developed tagline, “A Once in a Lifetime Decision Deserves a One of a Kind Partner,” demonstrated perfectly the firm’s genuine commitment to their companies and community.
We also worked with the firm to build a library of founder partnership stories, serving as an evergreen resource for prospective portfolio companies to learn more about Endeavour’s ethos and partnership approach.
Highlighting Partnerships and Crafting Tailored Messaging
If your firm commits to collaboration and partnership with founder-sellers, highlight these relationships and examples.
Founder-sellers are keen on preserving the legacy of their business and ensuring its continued success post-acquisition. Assure them your firm respects their vision and is dedicated to nurturing the company's growth while honoring its heritage.
Recognize that each founder-seller is unique, with individual priorities and concerns.
Tailor your messaging to address their specific needs and aspirations. Acknowledge the significance of their selling decision and convey understanding throughout the communication process.
Visual imagery also plays a decisive yet subtle role in shaping perceptions.
Opt for visuals that evoke warmth, authenticity, and continuity. Instead of showcasing opulent office spaces, prioritize images that reflect shared values and experiences.
Leverage Case Studies and Testimonials
Through case studies and testimonials, provide tangible evidence of successful partnerships with founder-sellers. Hearing firsthand accounts of positive experiences can instill confidence and alleviate concerns.
Your firm’s past relationships and reputation among previous and existing founder-sellers is ultimately one of the only truly proprietary and directly indicative proof points you have.
Highlight instances where your firm aligned with the values and goals of founder-sellers, emphasizing long-term relationships built on mutual trust and respect.
Building Lasting Connections with Founder-Sellers
A private equity firm can stand out from competitors by humanizing its brand, emphasizing partnership alongside profit, and tailoring its messaging to resonate with the unique needs of founder-sellers.
This approach positions them as a team that forges meaningful connections and establishes long-lasting relationships.
Connect with Darien Group today to discuss the most effective marketing approach for founder-sellers and how we can help your firm craft messaging that resonates, highlights your unique value, and builds lasting connections with this pivotal audience.
Our tailored strategies focus on authenticity, partnership, and thoughtful storytelling to position your firm as a trusted partner for founder-sellers navigating critical decisions.
