The Power of Conversation: 11 Valuable Lessons from My Interview with Marc Morgenstern, Author, Mentor and Capitalist - Author of The Soul of the Deal. E104 Watch Here
Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit crude, you're reading our notes, so. yeah. -Ron
Post Show notes:
At the time of this interview, I was already knee-deep in the outline and had started writing a collaborative book building Rapport. So many of Marc's topics in this interview really line up with what I had written. I can't say if that influenced this interview or not, I like to go into every interview with the mindset, I know nothing and everything this guest says is new, interesting and valuable.
Concept 1: Believe in Yourself and Your Dreams
Believing in yourself and your dreams is an essential part of achieving success. Without it, it is difficult to take risks and make the necessary sacrifices to make your dreams a reality. Marc Morgenstern, an author, capitalist, and mentor has been in the business acquisition industry for over 45 years and has experienced firsthand the importance of believing in yourself and your dreams.
Morgenstern got his start in the business when he began selling encyclopedias door to door. This experience taught him the value of what motivates people to either buy or sell things. He observed that most people make decisions out of ego, fear, time pressure, greed, and perceived self-interest. He also learned that it is essential to explore and illuminate in order to figure out who the potential customer or counterparty is.
Morgenstern's experience selling door-to-door also taught him the importance of believing in yourself and your dreams. He found that developers, entrepreneurs, and musicians all have to believe in the strength of their product in order to be successful. It is not enough to just logically think your way through a situation; you must have faith in yourself and your dream in order to make it a reality.
Believing in yourself and your dreams is an essential part of achieving success. It is not enough to just logically think your way through a situation; you must have faith in yourself and your dream in order to make it a reality. This is something that Marc Morgenstern has experienced firsthand and it is something that we can all learn from. Believe in yourself and your dreams and you will be able to achieve anything you set your mind to.
Concept 2: Listen to Build, Not Tear Down
Morgenstern's experience as an entrepreneur, venture capitalist, and author has given him a unique perspective on success. He believes that the key to success is to listen to build, not tear down. This means that rather than listening to find fault or to debate, we should be listening to find solutions and to build something that is worthy of being purchased. We should not be trying to tear down the ideas of others, but rather use our listening skills to build something that will be beneficial to all involved.
Morgenstern also believes that it is important to set expectations and be clear about what you want. An expectation unarticulated is a disappointment guaranteed. This means that if you do not clearly communicate your expectations to others, you are setting yourself up for disappointment. It is important to be clear and concise in what you are asking and expecting from others.
Morgenstern also believes that it is important to think of the end goal when starting a project. When starting a business, it is important to think of who would buy it and build something that is worthy of that purchase. This helps to ensure that the business will be valuable to other people in the space and that it will be successful.
Finally, Morgenstern believes that it is important to remember that when taking on outside investors, their expectation is that they will get their money back plus a lot more. This means that when taking on outside investors, it is important to keep in mind that you will eventually need to sell the business in order to make them liquid.
Morgenstern's experience as an entrepreneur, venture capitalist, and author has given him a unique perspective on success. His advice to "listen to build, not tear down" is invaluable and something that we can all learn from. Believe in yourself and your dreams and you will be able to achieve anything you set your mind to. Set expectations and be clear about what you want. Think of the end goal when starting a project. And remember that when taking on outside investors, you will eventually need to sell the business in order to make them liquid. These are all important lessons that can help us to achieve success.
Concept 3: Active Listening is Essential
But the most important lesson of all is the importance of active listening. Active listening is the act of truly hearing what someone is saying and taking the time to understand their words. It is about listening with an open mind, rather than just hearing the words and making assumptions. Active listening requires us to be present in the moment, to pay attention to the speaker's body language and tone of voice, and to ask questions to gain clarity. By actively listening, we can make sure that we are on the same page as the other person and that our expectations are clear.
Active listening is essential in any situation, especially when it comes to business. When it comes to deals, it is important to make sure that both parties understand the expectations and that they are on the same page. If expectations are not communicated clearly, it can lead to misunderstandings and unmet expectations. This can lead to a deal falling apart and can cause a lot of frustration and wasted time.
Active listening is also essential when it comes to relationships. Unmet expectations are often the cause of relationship issues, and these issues can be avoided if both parties take the time to actively listen to one another. By listening to understand rather than to respond, we can make sure that both parties are on the same page and that expectations are clear.
In conclusion, active listening is an essential skill that we should all strive to master. It is important in any situation, but especially when it comes to business and relationships. Taking the time to actively listen can save us from misunderstandings and unmet expectations, and it can help us to build strong relationships and successful deals.
Concept 4: Tactical Empathy is Key
Tactical empathy is key in this process. It means understanding the emotions behind the words, and being able to recognize and respond to them in an appropriate way. It is important to be able to read between the lines and understand the motivations of the other person. This helps us to connect with them on a deeper level, and to build trust and rapport.
Tactical empathy is also important when it comes to negotiations. It allows us to gain insight into the other person's perspective, and to be able to make decisions based on the emotional impact. This can help us to close deals more successfully and to make sure that everyone is happy with the outcome.
Overall, tactical empathy is a valuable skill that can help us to succeed in business and in relationships. It is important to be able to understand the emotions behind the words and to be able to respond in an appropriate way. Taking the time to actively listen and to build trust and rapport can help us to close deals and to build strong relationships.
Concept 5: Genuinely Build Relationships and Know The Seller's Story
When it comes to business, it is important to establish genuine deal empathy. This means that we need to take the time to get to know the people we are dealing with and to understand their motivations and goals. We need to be able to build trust and to demonstrate that we are reliable and trustworthy. If we are not genuine, people will be able to tell and this could have a negative impact on our business dealings.
It is also important to be able to build long-term relationships. This means that we need to be able to get to know the people we are dealing with and to understand their life story. Taking the time to understand their motivations and why they do what they do can help us to build stronger relationships. It is also important to be able to recognize when a relationship is not working and to be willing to walk away if necessary.
When it comes to buying a business, it is especially important to know the seller's story. Taking the time to understand the seller's motivations and goals can help to ensure that the transaction is successful. Knowing the seller's story can help the buyer to understand why the seller is selling, what the seller expects from the sale, and what the seller wants to achieve. It can also help the buyer to understand the seller's concerns and fears.
In addition, understanding the seller's story can help the buyer to build trust and to demonstrate that they are reliable and trustworthy. It can also help the buyer to gain insight into the seller's values and beliefs, which can help the buyer to make a more informed decision. Furthermore, understanding the seller's story can help the buyer to understand the seller's commitment to the business and to the people involved in the business.
Understanding the seller's story can help the buyer to develop a better understanding of the seller's expectations and to develop a better relationship with the seller. This can help to ensure that the transaction is successful and that the seller is satisfied with the outcome.
In conclusion, it is important to take the time to understand the seller's story when buying a business. Taking the time to understand the seller's motivations, goals, and concerns can help to ensure that the transaction is successful and that the seller is satisfied with the outcome. Furthermore, understanding the seller's story can help the buyer to build trust and to demonstrate that they are reliable and trustworthy.
Concept 6: Propinquity Counts In Deals
Propinquity - I had to look it up, so here is what I found- Propinquity -the state of being close to someone or something; proximity. So being in the same space, and physically able to shake hands, got it.
Marc, states that propinquity counts in deals. This is a phrase that Ron Perlman, a business consultant and founder of the consulting firm The Perlman Group, uses to emphasize the importance of understanding the seller's story when buying a business. Propinquity means closeness or proximity, and in the context of deals, it means understanding the seller's story. It is important to take the time to understand the seller's motivations, goals, and concerns in order to ensure that the transaction is successful and that the seller is satisfied with the outcome.
When selling or buying a business, it is important to ask questions about their plans for the business. Either side may be uncomfortable or think it is rude to be asked about their plans, but it is important to ask these questions in order to understand their expectations. Questions such as “If I sold it to you tomorrow, talk me through the first 90 days. What would you be doing? Who would be involved? How have you handled it before?, Do you need me?, If so what would I be doing? For how long", can help the buyer or seller to understand the other's expectations. Furthermore, asking questions about the buyer's experience and qualifications can help the seller to determine if the buyer is the right fit for their business.
It is also important to understand the human element of deals. When meeting in person, it is possible to get a sense of the buyer's character and trustworthiness through their handshake, posture, and mannerisms. However, in the current world of technology, it is more difficult to get a sense of the buyer's character. It is important to take the time to get to know the buyer and to build trust in order to ensure that the transaction is successful.
Overall, understanding the seller's story and taking the time to understand the buyer's character is essential for successful deals. Taking the time to understand the seller's motivations, goals, and concerns can help to ensure that the transaction is successful and that the seller is satisfied with the outcome. Furthermore, understanding the buyer's character and building trust can help to ensure that the transaction is successful. Propinquity counts in deals, and it is important to take the time to understand the seller's story and the buyer's character in order to ensure that the transaction is successful.
Concept 7: Negotiate With Open-Ended Questions
One of the most important aspects of a successful negotiation is to ask open-ended questions. Open-ended questions allow the seller to tell their story and provide more information. Open-ended questions also allow the buyer to understand the seller's motivations, goals, and concerns in order to better understand how to negotiate a successful deal. Open-ended questions also provide the opportunity for the buyer to build trust with the seller. Asking open-ended questions allows the buyer to understand the seller's story and build trust with the seller.
Open-ended questions are also important in negotiation because they can provide the buyer with more information. Open-ended questions can help the buyer understand the seller's motivations, goals, and concerns. Open-ended questions can also help the buyer understand the seller's character and build trust with the seller. Open-ended questions allow the buyer to understand the seller's story and build trust with the seller.
In addition to asking open-ended questions, it is important to take the time to understand the seller's story and the buyer's character. Taking the time to understand the seller's motivations, goals, and concerns can help to ensure that the transaction is successful and that the seller is satisfied with the outcome. Furthermore, understanding the buyer's character and building trust can help to ensure that the transaction is successful. Propinquity counts in deals, and it is important to take the time to understand the seller's story and the buyer's character in order to ensure that the transaction is successful.
Overall, it is important to ask open-ended questions in order to understand the seller's story and build trust with the buyer. Open-ended questions allow the buyer to understand the seller's motivations, goals, and concerns and build trust with the seller. Furthermore, it is important to take the time to understand the seller's story and the buyer's character in order to ensure that the transaction is successful. Open-ended questions and understanding the seller's story and the buyer's character are both essential for successful negotiation.
Concept 8: People are the epicenter
People are the epicenter of every deal. As a buyer, it is essential to understand the seller's motivations, goals, and concerns in order to ensure a successful transaction. Open-ended questions are the best way to gain an understanding of the seller's story and build trust with the buyer. Furthermore, it is important to take the time to understand the buyer's character in order to ensure that the transaction is successful.
Open-ended questions are the best way to gain an understanding of the seller's story and motivations. For example, when asking a seller for financials, instead of just sending a list of what is needed, it is best to have a conversation. This allows the buyer to pick up on the seller's visual cues and ask follow-up questions to gain a better understanding of the situation. Furthermore, it allows the buyer to ask the seller to explain why they are asking for the financials, what information they are looking for, and if the seller has any limitations. By asking open-ended questions, the buyer can gain an understanding of the seller's story and build trust with the seller.
It is also important to take the time to understand the buyer's character in order to ensure that the transaction is successful. For example, when negotiating a deal, it is important to have a conversation with the entire deal circle to understand their goals and concerns. This allows the buyer to understand the buyer's character and motivations and ensure that the deal is structured to meet their needs. Furthermore, it is important to ask the buyer the same questions throughout the negotiation process to ensure that the buyer's goals and concerns have not changed. By taking the time to understand the buyer's character and motivations, the buyer can ensure that the transaction is successful.
In conclusion, people are the epicenter of every deal. Open-ended questions are the best way to gain an understanding of the seller's story and build trust with the buyer. Furthermore, it is important to take the time to understand the buyer's character in order to ensure that the transaction is successful. Open-ended questions and understanding the seller's story and the buyer's character are both essential for successful negotiation.
Concept 9: Cash is Proxy for Time
Cash is a proxy for time in business deals. When it comes to buying and selling businesses, the prevailing thought is that the seller is weak and needs to sell, and the buyer has all the leverage. However, this is not always the case. In today's market, the seller and buyer both need to be realistic and mindful of the current economic climate. Cash is a proxy for time, and it is essential to have enough of it to be able to respond to whatever the market throws at you. It is also important to understand that black swan events are not as rare as people think, and that businesses need to be prepared for them.
It is important to remember that nothing happens without human psychology. People have a tendency to think that the solution to any problem is to buy something, but this is not always the case. Taking the time to understand the seller's story and the buyer's character is essential for successful transactions. Cash is a proxy for time, and it is important to have enough of it to be able to respond to whatever the market throws at you. By understanding the seller's story and the buyer's character, businesses can prepare for any situation and ensure successful deals.
Concept 10: Integrate to Make Acquisitions Work
Integrating an acquisition is one of the most difficult tasks in business. It requires an understanding of both the seller's and the buyer's needs and goals. It is not enough to simply purchase a company and assume that it will be successful. There are many factors to consider, such as cultural fit, organizational structure, and financial stability. It is essential to ensure that the acquisition is a good fit for both parties and that it will be successful in the long run.
Integrating an acquisition is not a one-time event. It requires ongoing effort to ensure that the integration is successful. This includes identifying and addressing any potential problems before they become major issues. It is also important to create a plan for the integration process and to ensure that the plan is followed. This includes setting goals, creating a timeline, and developing strategies for managing the integration process.
The key to successful integration is communication. It is important to keep all parties informed and involved in the process. This means having regular meetings and discussions with both the seller and the buyer to ensure that all parties understand the integration process and are working together to achieve the desired outcome.
Integrating an acquisition is a complex process that requires a lot of time and effort. It is essential to take the time to understand the seller's story and the buyer's character in order to ensure a successful transaction. By taking the time to understand the seller's story and the buyer's character, businesses can prepare for any situation and ensure successful deals.
Conept 11: Listen Like a Jammer
Marc explains that jazz musicians and jam bands, the artist has to really listen, hear everything, feel the rhythm and select where to contribute to make it sound great.
One of the most important elements in any successful acquisition is listening. Listening is a skill that can be learned and perfected, and it is essential to understand the other party's needs and desires. Listening like a jammer is a term used to describe the practice of paying close attention to the other party's points of view and responding in an appropriate manner. It is important to be open-minded and to be able to listen to both sides of a conversation.
When listening like a jammer, it is important to be patient and to pay close attention to the other party's words and body language. This will help to ensure that both parties understand each other and can come to a mutual agreement. It is also important to be able to ask questions in order to gain a better understanding of the other party's point of view. Asking questions can be a great way to get to the heart of the matter and to ensure that both parties are on the same page.
Listening like a jammer is an important skill to have when it comes to acquisitions. It is essential to be able to listen to both sides of a conversation and to be able to ask questions in order to gain a better understanding of the other party's point of view. Listening like a jammer can help to ensure that both parties are on the same page and that the transaction is successful. By taking the time to understand the seller's story and the buyer's character, businesses can prepare for any situation and ensure successful deals.
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