There's a Deal for That: A Deep Dive into Strategic Deal Types Beyond M&A

In this episode of the DealQuest Podcast, I dive deep into the fundamental premise of the show: "there's a deal for that." Any kind of business frustration, issue, or challenge can be solved through strategic dealmaking. While mergers, acquisitions, and capital raising get most of the attention, they're far from the only options available to entrepreneurs and business leaders.

What I've discovered through years of working with entrepreneurs is that many either don't have the deal-maker mindset, or if they do, it's limited to just the big-ticket transactions. But here's the thing: there's much more information available about M&A and capital raising than these other deal structures, yet these lesser-known approaches are often the ones that apply to a broader range of companies.

The reality is that only so many companies are fundable, and most companies aren't ready for significant M&A. That's exactly why understanding the full spectrum of deal possibilities becomes so crucial for business growth.

STRATEGIC PARTNERSHIPS OPEN DOORS THAT MONEY CAN'T

Let's start with joint ventures, which come in two flavors. You've got contractual joint ventures and entity joint ventures where you actually share ownership. I see these used brilliantly for market entry, where one party has the keys to a market and another has the products or services that market needs. It's like having an instant business relationship rather than trying to break down doors on your own.

Then there's technology development partnerships, where one company handles the tech development while another manages production or commercialization. Think Sony Erickson or early Hulu, where different organizations brought complementary strengths to create something neither could have built alone. The success factors here mirror any good business partnership: you need aligned objectives, crystal-clear governance, and everyone has to know how the money flows and decisions get made.

Strategic partnerships take this even further into marketing collaborations, technology integrations, and distribution relationships. These aren't just handshake deals. We're talking about co-development agreements where companies share R&D costs and product development risks. The Microsoft-SAP partnership evolution shows how these relationships can transform entire industries when done right.

YOUR INTELLECTUAL PROPERTY IS MORE VALUABLE THAN YOU THINK

Here's where many business owners leave money on the table. Technology licensing covers everything from patent portfolios to software to trademarks. On the brand side, you're looking at merchandising rights and content licensing that can generate ongoing revenue streams.

But what really interests me are the university-industry partnerships. Universities are research powerhouses, but they're not in the business of commercializing technology. That creates opportunities for businesses to license or acquire technology transfer rights, often with ongoing revenue sharing rather than one-time payments. When John Martinka was on the podcast, he hammered home the importance of protecting your intellectual property before any deal. He's trademarked phrases like "the escape artist" and constantly reminds people to "protect it, don't leave it out there, renew it when it needs renewing."

The know-how agreements fascinate me because they handle trade secrets and manufacturing processes that you might not want to patent. Patents require disclosure, which isn't always strategic. But you can still monetize that proprietary knowledge through licensing arrangements that keep your competitive advantages under wraps while generating revenue.

OPERATIONS DEALS THAT TRANSFORM YOUR BUSINESS MODEL

Business process outsourcing has evolved way beyond just moving back-office functions offshore. We're seeing sophisticated partnerships in finance, HR, and customer service that fundamentally change how companies operate. Manufacturing partnerships create opportunities for contract manufacturing and private labeling, where someone else produces goods under your brand.

White labeling works similarly for services. You're providing capabilities behind the scenes that partners offer under their own names. When I had Cliff Nonnenmacher on discussing the restaurant industry, we touched on how businesses constantly adapt their models to serve different market segments, and these operational partnerships make that flexibility possible.

Franchising represents another fascinating operational model. I've had some incredible conversations about this with Pete Mohr, who shared his experience buying out of a franchise agreement that wasn't serving him well, and Greg Mohr, who helps people find the right franchise opportunities. What struck me about Devan Gonzalez's story was his decision to franchise his business from just a single location, going against conventional wisdom about proving the model first.

Procurement partnerships create interesting dynamics too. Companies, sometimes even competitors, band together to negotiate better supplier terms through collective purchasing power. The key is finding those win-win scenarios where everyone benefits from the collaboration.

ASSETS DEALS BEYOND THE OBVIOUS

Asset deals extend well beyond full company acquisitions. You can sell individual assets like equipment, facilities, subsidiaries, or intellectual property portfolios. Sale-leaseback arrangements let companies convert assets to cash while retaining operational use through lease agreements. It's a balance sheet optimization play that can free up capital for growth.

Real estate transactions deserve their own category because they can mirror many corporate deal structures. Development deals, built-to-suit agreements, real estate joint ventures, various funding structures. Many of the frameworks we use on the corporate side adapt beautifully to real estate with the right modifications.

Distressed asset sales create opportunities both inside and outside bankruptcy proceedings. Richard Manders shared fascinating insights about his experience executing seven acquisitions while growing his business. What impressed me was how strategic buyers like him can acquire companies and then optimize their portfolio by spinning off non-core assets, essentially using deals to build exactly the business they want.

FINANCIAL RESTRUCTURING AS STRATEGIC OPPORTUNITY

Debt restructuring and workout agreements help companies navigate financial difficulties, but they're not just defensive moves. Assignments for the benefit of creditors can provide fresh starts by transferring valuable assets to creditors in exchange for debt relief and operational freedom to rebuild.

Corporate reorganizations include spinoff transactions where companies divest divisions or subsidiaries. This often happens in connection with acquisitions, where buyers acquire entire companies but only want specific pieces, then spin off what they don't need. Management buyouts can facilitate these spinoffs, creating opportunities for existing management teams to own the businesses they've been running.

THE EMERGING DEAL LANDSCAPE

Digital economy transactions are creating entirely new categories. Data licensing, platform partnerships for API integrations, marketplace relationships. These deals reflect how digital assets and capabilities are becoming central to business value.

Cryptocurrency and blockchain deals involve token partnerships and related structures, though this represents a specialized area requiring specific expertise that most of us, myself included, don't have deep experience with.

Environmental partnerships are gaining traction through carbon credit transactions and sustainability collaborations where companies work together to create more environmentally friendly products. Impact investing structures serve investors who balance financial returns with specific impact-related criteria when making investment decisions.
GETTING THE DETAILS RIGHT MAKES OR BREAKS THESE DEALS

Every deal type requires careful attention to risk allocation through indemnifications and liability assignments. Governance structures must define how decisions get made and how disputes get resolved. Performance metrics establish success measurements and trigger various rights or economic benefits.

Exit provisions function like business prenups, defining how partnerships can be unwound when circumstances change. This becomes particularly important when dealing with next-generation employees or partners. I covered this in detail in a recent solocast about how G2 succession issues can impact external sale opportunities, because these human dynamics can make or break deals.

Due diligence applies across all deal types, covering financial, legal, operational, and cultural factors. Whether you're considering a joint venture, licensing agreement, strategic alliance, or any other partnership structure, the fundamental question remains the same: what does each party bring to the table, and where do you want to end up together?

THE DEAL-MAKER MINDSET CHANGES EVERYTHING

The fundamental message here is that any business problem, challenge, or growth opportunity can be addressed through a deal. You don't need to know exactly what the deal should be called or how it should be structured. Start by identifying where you are, what each party can contribute, and where you want to go together.

From there, we can determine whether it makes sense as a joint venture, strategic alliance, licensing deal, subcontract arrangement, joint marketing agreement, distribution partnership, or any other structure. The key is developing that deal-maker mindset, where you automatically start thinking about partnership solutions to business challenges.

These alternative deal structures are available to far more companies than traditional capital raising or M&A transactions. They offer creative, interesting opportunities for growth and problem-solving across industries and company sizes. Sometimes the most elegant solution isn't buying or selling a company. Sometimes it's finding the right partner and structuring the right deal to get everyone where they want to go.

Tune in to this episode to hear me break down the full spectrum of deal types available to business leaders. From strategic partnerships to emerging digital economy transactions, this deep dive will expand your thinking about what's possible through strategic dealmaking. If specific areas intrigue you, I'd recommend exploring our conversations with franchise experts like Greg Mohr and Devan Gonzalez, M&A specialists like John Martinka and Richard Manders, or any of our succession planning discussions that help you think through internal versus external growth strategies.

• • • Listen to the full DealQuest Podcast episode here • • •

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Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

Get deal-ready with the DealQuest Podcast with Corey Kupfer, where like-minded entrepreneurs and business leaders converge, share insights and challenges, and success stories. Equip yourself with the tools, resources, and support necessary to navigate the complex yet rewarding world of dealmaking. Dive into the world of deal-driven growth today!