How to Get Investors Onboard: What Founders Need to Know with Stew Campbell Part 2

May 22, 2025

In this insightful conversation, Stew Campbell, a Partner at The Chernin Group, specializes in guiding consumer brands to scale. He shares practical advice on managing a competitive investor process and the importance of aligning capital strategy with long-term wealth goals. The discussion also delves into growth equity versus private equity, and how to evaluate term sheets and potential investors. Stew emphasizes creating value beyond just capital and navigating the complexities of founder-investor relationships, making it a crucial listen for current and aspiring entrepreneurs.

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ADVICE

Run Competitive Investor Process

Run your own competitive investor process by soliciting IOIs and term sheets from 10 firms.
Prepare data rooms and prime your team to handle investor diligence efficiently.

ADVICE

Do Reverse Diligence on Investors

Call portfolio company CEOs to perform reverse diligence on potential investors.
Ask for honest feedback on investor behavior to avoid surprises later.

ADVICE

Use IOI Before LOI

Understand the difference between IOI (indication of interest) and LOI (letter of intent).
Use IOIs as talking documents that outline price ranges and deal structure early in the process.

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Stew Campbell, Partner at The Chernin Group In Part 2, Stew Campbell returns to share tactical guidance for founders evaluating outside capital. We dive deep into how to run a founder-led investor process, what to watch for in term sheets, and how to build long-term wealth while scaling a founder-led business. Stew breaks down growth equity vs. private equity, investor diligence, and how to choose a partner who accelerates—not limits—your next chapter. This episode is a must-listen for any operator planning a recap, acquisition, or capital raise in the next 1–3 years. Things You’ll Learn:

How to run a founder-led competitive investor process
What to ask when evaluating potential investors and term sheets
How to align capital strategy with long-term wealth goals
Ways great investors create real value beyond the check

______________________ This episode is sponsored by DealRoom! Turn your chaos into control. Tired of chasing updates across spreadsheets and email threads? Discover how DealRoom helps corporate development teams bring order to M&A. 👉 Learn how you can run a repeatable, buyer-led process ___________ Join Kison at the DealMakers Forum in New York City! This event connects the most active players in M&A and corporate finance. Meet top M&A executives, investors, and deal advisors and discover how senior leaders structure and close high-value deals. Register Today! ________________________

Episode Chapters

[00:04:00] - What happens when firms break process and push early

[00:05:00] - Building long-term relationships before you transact [00:08:30] - IOI vs. LOI: How to solicit and compare offers

[00:09:30] - The three most important terms to negotiate

[00:12:30] - Founder control, redemption timelines, and board dynamics

[00:15:00] - Setting personal wealth goals alongside business strategy

[00:19:30] - Case study: How one founder gave back to their community

[00:21:30] - Challenging assumptions around recap timing

[00:27:00] - How to get the most value from investor advisors

[00:34:30] - Bootstrap vs. venture-backed founder mindsets

[00:46:30] - Craziest things seen in M&A: Founder stories & deal drama

Questions, comments, concerns? Follow Kison Patel for behind-the-scenes insights on modern M&A.