CEO/Deal sponsor, Corporate Development, Diligence Team, Banker, Consultants
Team collaboration, Honesty, Creativity
After the deal thesis has been announced, assemble the red team and green team. It is important to find people who don’t believe in the deal and put them on the red team. If you can’t find any, you can hire an outside consultant to give you an unbiased perspective regarding the deal.
The green team, on the other hand, is there to protect the deal thesis. Ideally, both teams will be composed of 3 to 4 people.
After the teams have been assembled, give them time to prepare for their respective arguments.
48 hours before the discussion day, all their cases need to be out in the open for the other team to read. This will give them enough time to prepare for arguments the other team might have for a more productive discussion.
You cannot dispute every fact. There needs to be a stipulation on a common set of facts that both teams can agree on.
Each team will only have 20 minutes to present their cases, so it is important to focus on the conversation about the difference in perspective.
After much research and preparation, it is time to face the jury. Set aside 1 hour for this play.
Start with the red team and give them 20 minutes to present their case as to why the deal shouldn’t push through. Then 20 minutes for the green team to convince the CEO otherwise, and the last 20 minutes should be set aside for final discussion.
At the end of the day, you are all part of one team and you need to agree on what’s best for the company.