Gerry Williams, Partner at DLA Piper US LLP and a member of their management committee.
Private equity firms are established for the sole purpose of generating substantial financial returns for its investors. And one of the most effective ways of maximizing investment returns is the roll up strategy. This involves buying small-sized businesses in a highly fragmented industry and combining them into a larger platform. The goal is to improve efficiency and be sold later for a higher price.
In this episode of the M&A Science podcast, we will discuss roll up strategy in private equity with Gerry Williams, Partner at DLA Piper US LLP.
Things you will learn this episode:
• Industries susceptible to roll up strategy
• Challenges of executing roll up strategy
• Negotiating the LOI in roll up strategy
• Typical deal structure in roll up strategy
• Employing Earnouts in roll up strategy
This episode is sponsored by FirmRoom
FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to firmroom.com
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Episode Bookmarks
00:00 Intro
04:06 Industries susceptible to roll up strategy
06:22 The trend of roll up strategy in private equity
10:42 Complexities of Roll up strategy
15:52 Challenges of executing roll up strategy
20:32 How to mitigate risks
24:19 Managing multiple roll up businesses
26:49 Negotiating the LOI in roll up strategy
33:00 Breakup fees on private deals
35:57 Typical deal structure in roll up strategy
43:24 Employing Earnouts in roll up strategy
48:07 Unique negotiations during LOI
49:31 Do’s and Don’ts of executing roll up strategy
52:57 Craziest thing in M&A
Tyler Rodewald, VP, M&A at EIS Holdings
In a world where change is the only constant, businesses are continually seeking innovative ways to stay ahead of the curve. One such method that has gained prominence is the corporate diversification strategy, a multifaceted approach that can lead to new growth avenues and enhanced resilience.
In this episode of the M&A Science Podcast, Tyler Rodewald, VP, M&A at EIS Holdings, discusses corporate diversification through M&A.
Things you will learn:
• Corporate diversification strategy
• Drivers of corporate diversification
• People involved in corporate diversification
• Projecting revenue synergies
• Closing deals with competition
This episode is brought to you by the M&A Science Spring Summit 2024 happening on April 10th at 10AM ET. It's your chance to join leading M&A experts as they share innovative and the latest trends from their own deals. Save your spot here.
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Episode Bookmarks
00:00 Intro
02:55 Corporate diversification strategy
03:32 Drivers of corporate diversification
05:22 People involved in corporate diversification
08:00 Communicating the diversification strategy - The number one step
08:51 Customer overlaps on deals
11:17 Capital Allocation
13:41 Proprietary deal vs Bank Deal
15:22 Deal Sourcing
17:57 Closing deals with competition
19:22 Cultural integration
22:03 Handling resistance
23:21 Measuring Success
24:31 Projecting revenue synergies
26:09 Earnouts
30:31 Letter on intent exclusivity
32:10 Combining diligence with integration using DealRoom
36:42 Using DealRoom with Sellers
40:02 Advice for practitioners doing corporate diversification
40:30 AI in M&A
46:34 Craziest thing in M&A
Andrey Galiuk, Vice President of Corporate Development and Investor Relations
Before doing M&A, it is crucial for acquirers to target the right business, in the right market. Otherwise, it could potentially be a costly mistake that would waste the company’s time and money.
In this episode of the M&A Science Podcast, Andrey Galiuk, Vice President of Corporate Development and Investor Relations, shares his expertise on how to perform strategic due diligence in M&A.
Things you will learn:
• What is strategic due diligence
• How to perform strategic due diligence in M&A
• Entering the right market
• Finding the right target company
• Biggest challenge when performing strategic diligence
This episode is brought to you by the M&A Science Spring Summit 2024 happening on April 10th at 10AM ET. It's your chance to join leading M&A experts as they share innovative and the latest trends from their own deals. Save your spot here.
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Episode Bookmarks
00:00 Intro
11:17 What is strategic due diligence
16:25 How to perform strategic due diligence in M&A
25:00 Entering the right market
38:05 Finding the right target company
41:25 When to perform strategic due diligence
42:38 Proactive vs. Reactive deal sourcing
44:33 Importance of culture
47:05 When to start integration planning
49:11 Red flags during strategic diligence
50:33 Assessing incoming people
51:20 Biggest challenge when performing strategic diligence
George Kellerman, VP, Head of Investments & Acquisitions at Woven by Toyota and Alexander Baum, Corporate Development Lead at Woven by Toyota
In the ever-evolving world of business, staying ahead isn't just about what a company does today, but how it prepares for tomorrow. This is where a venture capital arm comes into play. It is a specialized division within a larger company that focuses on investing in emerging startups and innovative projects.
In this episode of the M&A Science Podcast, George Kellerman, VP, Head of Investments & Acquisitions at Woven by Toyota, and Alexander Baum, Corporate Development Lead at Woven by Toyota, share their experience on how to stand up a venture capital arm.
Things you will learn:
• How did Woven by Toyota got started
• Successfully start a venture capital arm
• Leadership in managing people
• Biggest Lessons Learned
• Dealing with cultural difference
This episode is brought to you by the M&A Science Spring Summit 2024 happening on April 10th at 10AM ET. It's your chance to join leading M&A experts as they share innovative and the latest trends from their own deals. Save your spot here.
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Episode Bookmarks
*George Kellerman
00:00 Intro
06:15 From firefighter to M&A
09:49 How did Woven by Toyota got started
11:19 Project Kate
12:58 Pitching the shift in strategy
14:31 Woven Capital’s strategy
16:48 How to successfully start a venture capital arm
19:45 Leadership in managing people
22:03 Biggest lessons learned
26:00 A change in strategy
27:04 The Woven City Project
31:11 Dealing with cultural difference
35:40 Craziest thing in M&A
*Alex Baum
39:34 Noticing cultural differences in Japan
42:11 Relocating to Tokyo
44:07 New York vs Japan culture
45:28 Work culture in Japan
48:32 Rubber stamp approval in Japan
49:51 Balancing American and Japanese culture
51:27 Maintaining alignment
52:09 Craziest thing in M&A
Camilo Franco, Director, M&A Integration and Operations at Jamf
There is an intimate tie between M&A strategy and corporate strategy. To be truly effective, acquisitions must directly support the overarching goal of the company. But beyond that, there needs to be a strategic alignment with everyone involved.
In this episode of the M&A Science Podcast, Camilo Franco, Director, M&A Integration and Operations at Jamf, shares their secrets on how to achieve strategic alignment from top to bottom.
Things you will learn:
• How to achieve strategic alignment
• Strategies for effectively communicating M&A plans
• Tools used to maintain alignment
• Connecting diligence and Integration
• Advice for integration practitioners
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This episode is brought to you by the M&A Science Spring Summit 2024 happening on April 10th at 10AM ET. It's your chance to join leading M&A experts as they share innovative and the latest trends from their own deals. Save your spot here.
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Episode Bookmarks
00:00 Intro
08:45 Definition of strategic alignment
10:31 How to achieve strategic alignment
12:51 Relaying M&A strategy against corporate strategy
13:54 Getting buy-in from team members
15:37 Overcoming anti-M&A culture
18:44 Strategies for effectively communicating M&A plans
21:21 Alignment with the integration team
23:51 Formulating the integration thesis
26:37 Role of steering committee
28:04 Communicating decisions with the broader organization
29:30 Managing integration without IMO
32:09 Ensuring company readiness for integration
34:11 Gauging M&A readiness
36:06 Side effects of burnout people
37:25 Defining the end of integration
39:30 Tools used to maintain alignment
43:32 Agile M&A
44:46 Connecting diligence and integration
48:13 Using integration templates
50:36 Advice for integration p
Ken Bond, Head of Corporate Development at Cetera Financial Group.
Most of the biggest M&A failures of all time are caused by culture clashes. Both companies cannot simply co-exist with each other, and instead of creating more value, they destroyed both of their businesses. This is why cultural due diligence is crucial in M&A.
In this episode of the M&A Science Podcast, Ken Bond, Head of Corporate Development at Cetera Financial Group, shares his expertise on how to perform cultural due diligence to better understand the target company.
Things you will learn:
• The person responsible for cultural due diligence
• Executing cultural due diligence
• Using Playbooks
• Successful partnership between Corporate Development and Integration
• Advice for practitioners
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This episode is sponsored by the DealRoom
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at www.dealroom.net.
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Episode Bookmarks
00:00 Intro
05:11 Person responsible for cultural due diligence
05:54 Importance of cultural due diligence
08:08 Executing cultural due diligence
10:29 Killing the deal due to cultural conflict
14:54 Using Playbooks
17:31 Cultural due diligence during early conversations
20:12 Understanding how the target company makes decisions
22:40 Things to look for during due diligence
25:09 Using questionnaires for cultural due diligence
27:08 Bilateral deal vs. Auction process
30:10 Hardest part of cultural due diligence
32:27 Successful partnership between Corporate Development and Integration
35:33 Subculture due diligence
37:07 Advice for practitioners
38:31 Craziest thing in M&A
Baljit Singh, Former SVP, Global Head of Corporate Development at Nielsen Ventures
Engaging in M&A activities just for the sake of doing them is one of the biggest reasons for failed deals. Without a well-defined purpose, these transactions can distract the business and waste massive amounts of resources.
In this episode of the M&A Science Podcast, Baljit Singh, Former SVP, Global Head of Corporate Development at Nielsen Ventures, discusses the importance of strategic alignment between M&A and corporate strategy.
Things you will learn:
• Corporate strategy vs M&A strategy
• Getting the strategy right
• Capital allocation
• Measuring business unit’s success
• Deal structure to preserve cash
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This episode is sponsored by FirmRoom.
FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to firmroom.com
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Episode Bookmarks
00:00 Intro
05:10 Corporate strategy vs M&A strategy
09:25 Getting the strategy right
11:17 Best ways to pitch deals
13:09 Pillars of corporate strategy
15:50 Capital allocation
21:06 Measuring business unit’s success
24:52 Holding business units accountable
27:20 Why take a public company private
33:51 Steps to take a public company to private
38:11 Real life examples
48:29 Deal structure to preserve cash
54:45 Dealing with reluctant seller
59:30 Craziest thing in M&A
Problems don’t usually surface at the early stages because it's the honeymoon phase. Both the buyer and the seller would like to see the deal happen, so they work together to build momentum. And often that means postponing dealing with some of the more difficult and contentious issues. However, these M&A challenges are inevitable and will arise as the deal progresses.
In this episode of the M&A Science Podcast, Douglas Barnard, former Executive Vice President, Corporate Development and Legal Advisor at CF Industries, discusses effective strategies to overcome M&A challenges.
Things you will learn:
• Mindset to prepare for M&A
• Overcoming M&A Challenges Between Signing and Closing
• Mitigating Post-Merger Integration Risks
• Biggest Challenges in M&A
• Advice for First-time Acquirers
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This episode is sponsored by FirmRoom.
FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to www.firmroom.com.
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Episode Timestamps
00:00 Intro
05:26 Mindset to prepare for M&A
10:26 Strategic Negotiation Tactics
13:03 Having a Foundation of Trust and Honesty
17:31 Assessing Buyer Transparency in Deal Negotiations
20:17 Mastering Valuation and Identifying Synergies
22:43 Identifying and Overcoming Obstacles in the M&A Process
24:40 Uncovering Surprises in Due Diligence
28:53 Utilizing a Private Investigator (PI) in a Deal
29:57 Navigating Complex Negotiation Stages
33:54 Zero-Sum Scenarios in M&A Auctions
35:51 Valuation and Auction Bidding Strategies
37:57 Overcoming M&A Challenges Between Signing and Closing
41:29 Mitigating Post-Merger Integration Risks
46:16 Biggest Challenges in M&A
50:24 Advice for First-time Acquirers
52:51 Craziest thing in M&A
Allan Marks, Global Project, Energy & Infrastructure Partner at Milbank
M&A valuation isn’t just about looking at the numbers. There are a lot of different factors that affect and contribute to the volatility of the M&A market.
In this episode of the M&A Science Podcast, Allan Marks, Global Project, Energy & Infrastructure Partner at Milbank, discusses how business cycles affect M&A valuation.
Things you will learn:
• What is a business cycle
• What is a credit cycle
• How business cycle impact M&A valuation
• Common Mistake during M&A valuation
• Importance of culture in M&A
This episode is sponsored by the DealRoom
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at dealroom.net.
00:00 Intro
11:00 What is a business cycle
12:41 What is a credit cycle
16:59 Cycle’s impact on energy sector
19:09 How business cycle impact M&A valuation
22:36 Industries most affected by the cycles
26:43 M&A valuation for first-timers
31:47 Importance of culture in M&A
34:23 When to pull of a deal
37:37 Example of failed deals
41:59 Example of good deals
45:43 Common Mistake during M&A valuation
46:43 M&A function maturity
48:02 Other early M&A considerations
49:15 Craziest thing in M&A
When executing M&A, having a structured approach to validating the acquisition plan is crucial. The worst thing any acquirer can do is to buy a business that doesn’t bring value to the parent company.
In this episode of the M&A Science Podcast, Adam Harris, CEO of Cloudbeds, shares the meticulous 6-step process his company uses to validate their acquisition plan.
Things you will learn:
• Surveying Customers
• Industry Trend Analysis
• Partner vs Build Analysis
• Formulating the strategic rationale
• In-depth Company Analysis and Product Demos
• Drafting a detailed memo
This episode is sponsored by the DealRoom
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://www.dealroom.net
00:00 Intro
08:45 Approaching M&A
18:20 Surveying Customers
23:47 Industry Trend Analysis
28:13 Partner vs Build Analysis
34:12 Formulating the strategic rationale
36:50 In-depth Company Analysis and Product Demos
41:18 Drafting a detailed memo
44:15 Pitching M&A to the board
44:54 Craziest thing in M&A
Seema Nimmagadda, Head of M&A Integration for North America at Woven by Toyota.
A lot of times, M&A integration is considered only after closing the deal. It is often treated as an afterthought, and this approach is where many deal failures stem from. If we want to improve our M&A process and get better results from deals, we have to start updating our practices to the most efficient way of doing things.
In this episode of the M&A Science podcast, Seema Nimmagadda, Head of M&A Integration for North America at Woven by Toyota, discusses how to master M&A integration.
Things you will learn in this episode:
• The Ideal Integration Process
• M&A Integration planning pre-LOI
• Setting up an early version of the IMO
• Detailing the M&A Integration Strategy
• Aligning deal goals with integration strategy
This episode is sponsored by FirmRoom. FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to https://firmroom.com
00:00 Intro
04:00 Toyota’s Woven Business Unit
05:00 The Ideal Integration Process
06:53 The Importance of Integration Capabilities
08:52 Integration planning pre-LOI
11:50 Ensuring Adequate Resources and Capabilities during M&A Integrations
13:27 Avoiding early pitfalls for integration
14:40 Key integration milestones from LOI to Close
18:53 Aligning the IMO and Corporate Development
21:49 Adapting mature M&A teams to change
23:28 Setting up an early version of the IMO
25:04 Key people in forming an early IMO
26:16 Detailing the Integration Strategy
29:09 Balancing team autonomy in integration planning
31:56 Maintaining collaboration and progress in integration
34:24 Managing cross-functional dependencies
35:16 Tech stack diversity
36:41 M&A execution checkpoints
38:04 Information gathering challenges pre-close
39:08 Managing vendor dependencies and ensuring transparency
40:12 Balancing functional plans with the master integration strategy
42:04 Securing stakeholder buy-in
43:04 Risks of overlooking integration
44:03 Aligning deal goals with integration strategy
44:36 Identifying when an M&A integration is complete
46:25 Best practices for smooth post-close integrations
46:59 Craziest thing in M&A
Brent Baxter, Chief Executive Officer at Association for Corporate Growth, and Jeff Giles, VP, Corporate Development at Core & Main (NYSE: CNM)
In a highly competitive market, speed is crucial for companies wanting to do M&A. Especially with all the economic and market changes that’s happening, professionals must use M&A best practices to get better deals.
In this episode of the M&A Science Podcast, Brent Baxter, Chief Executive Officer at Association for Corporate Growth, and Jeff Giles, VP, Corporate Development at Core & Main, share their strategies and experiences when executing successful M&A.
Things you will learn:
• Target outreach
• Best practices when building relationships
• Challenges of working with private sellers
• Executing agile and efficient Diligence
• Role of technology in the M&A process
This episode is sponsored by the DealRoom.
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://dealroom.net
00:00 Intro
07:12 Getting deals faster
10:35 Target outreach
15:54 Best practices when building relationships
19:47 How to best optimize ACG
22:46 M&A challenges
25:20 Challenges of working with private sellers
29:39 Executing agile and efficient Diligence
34:53 Executing deals during COVID
39:59 Role of technology in the M&A process
42:06 Role of technology in the future
46:47 Craziest thing in M&A
Amy M. Weck, VP, M&A and integrations at The Liberty Company Insurance Brokers, LLC
It's common to see due diligence and integration as separate stages, but combining them can make the M&A process much smoother and more effective. But how exactly can we weave these two critical phases together effectively?
In this episode of the M&A Science Podcast, Amy M. Weck, VP, M&A and integrations at The Liberty Company Insurance Brokers, offers practical strategies to align integration and diligence for optimal outcomes.
Things you will learn in the episode:
• Merging separate integration departments
• How to connect diligence and integration
• Fostering a ‘One Team’ Mindset
• Maintaining Team Rhythm in High-Volume Acquisitions
This episode is sponsored by FirmRoom. FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to https://firmroom.com.
00:00 Intro
04:26 Getting into M&A
06:12 Evolving into integration
07:55 Transitioning from deal team to integration team
09:26 Pre-LOI considerations in M&A
10:40 Merging Corp Dev and Integration Team
13:26 The impact of mindset during transition
15:26 Connecting the two functions
18:42 Keeping teams and workflows aligned
22:14 Biggest challenge in the transition
24:05 The challenge of change management
26:11 Managing new hires in key roles
27:29 Key advice for managing the end-to-end M&A process
34:37 Optimizing the M&A function for a roll-up
36:21 Practical Tips for Learning from Past Due Diligence
38:16 Maintaining Team Rhythm in High-Volume Acquisitions
40:05 Key Strategies to Avoid Failing in Your Integrations
42:02 Key Questions to Ask Before the LOI
43:17 Evaluating Cultural Fit and Red Flags
48:15 Ideal candidate for an M&A role
59:44 Advice to first-time M&A practitioners
1:01:02 Craziest thing in M&A
John Blair, Partner M&A Attorney at K&L Gates
In M&A, it’s very common for buyers and sellers to disagree on the value of the business. If both parties cannot agree on the price, the deal could fall apart. However there are certain strategies and tools that both parties can use to compromise and be happy during closing.
In this episode of the M&A Science Podcast, John Blair, Partner M&A Attorney at K&L Gates, shares best practices on how to bridge valuation gaps in M&A.
Things you will learn in this episode:
•Bridging gaps in M&A Valuation
•Earnouts
•Seller Financing
•Equity structure
•Market’s impact on Bridging M&A Valuation Gaps
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://dealroom.net
00:00 Intro
04:13 When to get involved in the M&A Process
07:50 Negotiations during LOI
09:42 Bridging gaps in M&A Valuation
11:09 Using Holdbacks to Bridge M&A Valuation Gaps
13:20 Seller Financing
15:00 Earnouts
16:43 Earnouts on Intellectual Property
18:45 Key Variables in an Earnout
23:14 Earnout payment structure
25:53 Making Earnouts Successful
29:08 Structures of Seller Financing
36:24 Traditional terms of seller financing
38:20 Equity structure
41:04 Stock options
43:52 Minimizing the cash upfront during a sale
46:34 Contents of Letter of Intent
49:14 Advice for first timers
50:01 Craziest Thing in M&A
In the dynamic world of mergers and acquisitions (M&A), creating an effective team is crucial for success. This process can be complex and demanding, but also immensely rewarding. After all, having an internal team means having the capability of acquiring companies in the future, rather than treating M&A as a one-time event.
In this episode, Birgitta Elfversson, Non-Executive Director at Netlight, shares her experience in transforming existing staff into M&A experts.
Things you will learn from this episode:
• Shaping the M&A strategy
• Building an M&A team
• Scaling the M&A Team
• Recruiting competent people
• Managing burnout
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://dealroom.net
00:00 Intro
10:54 Shaping the M&A strategy
12:46 Key elements of the strategy
14:58 Strategy approval
16:10 Challenges on the first acquisition
18:30 Building an M&A team
22:05 Scaling the M&A Team
25:10 Recruiting competent people
26:44 M&A Aptitude test
32:48 Working with consulting firms during M&A
37:17 Setting the external team up for success
39:08 M&A Team structure
39:48 Managing burnout
43:18 Programmatic M&A
49:09 Start up doing M&A
51:47 Integration execution
53:19 Smart collaboration in the future
55:51 Setting integration up for success
58:20 Craziest thing in M&A
Jake Lin, Head of Corporate Development at Xendit
Navigating cross border M&A is one of the most challenging tasks for deal makers. There are a lot of intricacies involved that are unique to each country, and must be handled delicately.
In this episode of the M&A Science Podcast, Jake Lin, Head of Corporate Development at Xendit, shares his best practices when executing cross border M&A, particularly in South East Asia.
Things you will learn:
Biggest challenge in Cross Border M&A
Language barrier during Cross border M&A
Managing Cultural Differences during negotiations
Cross border M&A best practices
Integration approach to cross border M&A
This episode is sponsored by the DealRoom.
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://dealroom.net.
00:00 Intro
05:44 Biggest challenge in Cross Border M&A
08:18 Cross Border M&A without Bankers
09:04 Working with Local Bankers
09:55 Language barrier during Cross border M&A
12:05 Managing Cultural Differences during negotiations
16:01 Managing the Speed of Cross border M&A
17:20 Cultural Differences almost killing the deal
18:48 Countries easiest to work with
21:06 Cross border M&A best practices
22:32 Strategic tips when dealing with Cross border M&A
23:49 Integration approach to cross border M&A
25:37 Negotiating Payment terms
28:59 Computation for stock payments
30:06 Advice for first-timers
30:29 Craziest thing in M&A
In today’s competitive global market, organizations need to leverage every tool in their arsenal to stay ahead of the curve. One of the best ways to do this is strategic M&A. With the right approach, M&A can drive significant growth, unlock fresh opportunities, and expedite the achievement of strategic business goals. In this article, Yoav Zeif, CEO at Stratasys, shares his experience on achieving business growth through strategic M&A.
Things you will learn in this episode:
•The Start of their M&A Journey
•Strategic M&A framework
•Evolution of Strategy
•Working with the corporate development team
•How to ensure positive business outcomes during integration
This episode is sponsored by FirmRoom, the fastest virtual data room used to get deals done. Leave the pay-per-page world behind by going to https://firmroom.com/
00:00 Intro
07:04 Start of M&A Journey
11:56 M&A strategy framework
18:58 Real-life acquisition scenario
20:20 Evolution of Strategy
23:59 Working with the corporate development team
26:29 Corporate development teams pitching deals
30:22 How to ensure positive business outcomes during integration
31:57 Big lessons learned
39:18 Retaining key people
40:26 Other lessons
42:42 Craziest Thing in M&A
This episode is sponsored by FirmRoom, the fastest virtual data room used to get deals done. Leave the pay-per-page world behind by going to https://firmroom.com/
Russ Heddleston, Co-founder & former CEO, DocSend
Every owner loves their business. This makes selling their company even harder than it already is. But aside from the emotional turmoil that founders go through every exit, there are also a lot of intricacies included in the process.
In this episode of the M&A Science Podcast, Russ Heddleston, Co-founder & former CEO of DocSend, discusses the challenges of sell-side M&A.
Things you will also learn in this episode:
Considerations in Potentially Selling a Startup
Challenges of sell-side M&A
Key Factors for a Successful Exit
How to manage diligence in sell-side M&A
00:00 Intro
04:10 Starting DocSend
06:08 Identifying the Inflection Point to sell
09:01 Selling a Startup
10:46 Considerations in Potentially Selling a Startup
14:28 Best Time for an Exit
16:00 Balancing Stakeholder Interests in an Acquisition
17:50 Relationship Management in an Acquisition
19:46 How Relationships Influence Negotiations
20:41 Relationships with Bankers
23:14 Reaching out to DropBox
26:16 Key Factors for a Successful Exit
28:04 Impact of Market Conditions on M&A
28:45 The Unknowns of Selling a Business
30:53 Post-Acquisition Challenges and Unknowns
32:34 Enhancing Preparation for Post-Close Integration
34:05 Tips for Buyers for Smoother Integration
35:18 Challenges of Sell-side M&A
37:15 Efficiently Managing Diligence
38:46 People involved from pre-LOI to Close
41:36 Post-Acquisition Team Dynamics
43:01 Evaluating Alternatives to Selling
48:28 Fundraising Strategies to Minimize Dilution
49:44 Advice for Acquirers Seeking Successful Acquisitions
51:29 Effective Strategies for Corporate Leaders to Engage with Founders
53:14 Craziest thing in M&A
This episode is sponsored by FirmRoom, the fastest virtual data room used to get deals done. Leave the pay-per-page world behind by going to https://firmroom.com/
Jason Mironov, Managing Director at TA Associates
Partnering with PE firms is a great way to exponentially grow a business and reach new heights. However, there are considerations that must be taken into account, before taking PE capital. Fully understanding them will increase chances of success, in the attempt to unlock the full potential of the business.
In this episode of the M&A Science podcast, Jason Mironov, Managing Director at TA Associates, discusses the pros and cons of taking PE capital.
00:00 Intro
05:29 The Lack of Operating Experience
07:03 Pros of taking money from a private equity firm
11:01 Other factors to take money from PE firms
12:49 Cons of taking money from private equity
17:16 Focusing on IRR
22:10 Culture of focusing on numbers
26:54 Working with Unhappy CEO
30:06 Board control
35:33 Expectation for the Board Structure
38:30 Dilution for founders
42:53 How to build and preserve wealth
47:20 Approach on partnership
51:03 Handling Inbound Contacts
56:51 Creating value before partnership starts
01:03:15 Working with the founder
01:05:38 Pushing M&A to portcos
01:08:51 Founder Exit
01:16:01 Timeline of investment
01:20:26 Craziest thing in M&A
This episode is sponsored by DealRoom. Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at www.dealroom.net.
Michael Frankel, Founder and Managing Partner of Trajectory Capital
When times are good, big companies tend to ignore their smaller business units, as they operate smoothly on their own. It is only when the economy gets tough that these little businesses get more attention, and often seen as off-strategy or a distraction. That's when the company's leaders decide it's time to sell them, which is not ideal, as the business is no longer in their prime, making it harder to sell.
In this episode of M&A Science podcast, Michael Frankel, Founder and Managing Partner of Trajectory Capital, joins us to share his best practices of selling a small business unit.
00:00 Intro
03:35 The decision to sell a business
05:01 Reasons to sell the business
06:43 Steps in selling a small business unit
09:59 Finding buyers
11:53 Avoid using bankers
13:30 Pitching the deal
14:50 Avoiding non-serious buyers
16:42 Important factors other than price
23:01 Real life example
27:54 Valuation gap
30:29 Evaluating the business
34:45 Hardest part of selling a small business unit
37:03 Advice for first time buyers
41:48 Proactively approaching a seller
47:25 Earnouts on small deals
48:44 Craziest Thing in M&A
This episode is sponsored by FirmRoom, the fastest virtual data room used to get deals done. Leave the pay-per-page world behind by going to https://firmroom.com/
Selling your business is never easy. Aside from the emotional stress that it provides, it can also be detrimental to the business if it's sold to the wrong company. Oftentimes, during the process, it can also serve as a massive distraction to the operations, harming the business in the process.
In this episode of the M&A Science Podcast, we will discuss how to create a positive exit experience in M&A with Swapnil Shinde, CEO at Zeni.
Things you will learn:
• Reasons for the first exit
• Reacting vs Proactive Exits
• Hardest part of selling a business
• Role of sellers in Integration Planning
• Do’s and Don'ts of Buying a company
00:00 Intro
06:31 Reasons for the first exit
09:19 Venture Exit
12:19 Build to sell
14:03 Reacting vs Proactive Exits
16:28 Using Bankers during Exits
19:09 Hardest part of selling a business
21:30 Managing Diligence
24:28 Lessons Learned on Diligence
28:03 Keeping and building relationships
29:29 Role of sellers in Integration Planning
32:29 Reasons why Integration fails
34:49 Worst exit experience
36:31 Making integration successful
38:25 Do’s and Don'ts of Buying a company
39:41 Identifying Cultural Fit
This episode is sponsored by our products DealRoom and FirmRoom.
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://www.dealroom.net.
FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to https://www.firmroom.com
Chris Von Bogdandy, Global Lead M&A Solutions at Slalom
Revenue synergies are why you’re doing the deal in the first place. But unlike cost synergies that happen instantly, revenue synergies are more difficult to achieve and often go unrealized. One of the biggest problems in M&A is that when a company pursues a deal, different departments have varying perspectives on what's essential. So how do you maintain the deal thesis as a central focus?
In this episode of the M&A Science Podcast, Chris Von Bogdandy, Global Lead M&A Solutions at Slalom, discusses his framework for realizing revenue synergies in M&A.
Things you will learn:
•Importance of Revenue Synergies
•Correlation between M&A strategy and Revenue Synergies
•Understanding Customer Journey
•Planning for Revenue Synergies Pre-LOI
•Agile M&A
00:00 Intro
06:17 Importance of Revenue Synergies
09:58 Correlation between M&A strategy and Revenue Synergies
16:42 Timeline of Revenue Synergies
18:49 Realistic Revenue Synergies
21:14 Understanding Customer Journey
24:44 Planning for Revenue Synergies Pre-LOI
27:38 Capturing Revenue Synergies Post-LOI
31:04 Executing the Plan
34:21 Cross-Functional Work Streams
36:29 New product introduction process
40:15 Agile M&A
43:31 Disbanding team and workstreams
46:57 Top three principles to success
48:48 Advice for next generation of young leaders in M&A
This episode is sponsored by the M&A Science Academy, DealRoom, and FirmRoom.
To join our growing online community of M&A practitioners, visit https://www.mascience.com/academy.
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://www.dealroom.net .
FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to https://www.firmroom.com
Casey Nault, Senior Vice President, General Counsel and Chief ESG Officer at Coeur Mining, Inc. (NYSE: CDE)
ESG in M&A is very real. And while it is a fairly new term, it represents a range of critical issues and priorities that companies have long considered. In many ways, ESG has always been important and is essential for risk management and maintaining company value, even for for-profit organizations.
In this episode of the M&A Science Podcast, we will discuss how to focus on ESG in M&A, featuring Casey Nault, SVP, General Counsel, and Chief ESG Officer at Coeur Mining, Inc.
Things you will learn:
•Importance of ESG in M&A
•Balancing ESG and profit
•ESG diligence
•Red flags during ESG diligence
•ESG on cross-border deals
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This episode is sponsored by FirmRoom, the fastest virtual data room used to get deals done. Leave the pay-per-page world behind by going to www.firmroom.com
00:00 Intro
07:31 M&A in the Mining Industry
09:26 Valuation and Deal Structures in the Mining Industry
13:51 Foreign Corrupt Practices Act
15:57 Importance of ESG
20:13 Disaggregating ESG
21:49 Sustainability in today's market
24:04 Balancing ESG and profit
26:52 ESG considerations during M&A
30:58 Evolution of ESG approach
32:41 ESG diligence
33:35 Red flags during ESG diligence
35:31 Deal Stoppers
36:36 Designated person sustainability
37:17 Diligence Execution during M&A
39:19 ESG on cross-border deals
40:55 Negotiations on cross border deals
42:47 Advice for practitioners
43:18 Craziest thing in M&A
Brock Blake, Co-Founder and CEO at Lendio
M&A is a never-ending web of complexities and challenges. While the potential for growth and transformation is promising, the chances of failure are extremely high. To increase chances of success, acquirers must learn how to be adaptable and work with the target company for alignment.
In this episode of the M&A Science Podcast, Brock Blake, Co-Founder and CEO of Lendio, shares their approach on how not to bomb your first M&A deal.
You will learn:
• How to drive your first deal
• Understanding the cultural aspect of M&A
• Strategizing acquisitions
• Validating assumptions before acquisition commitment
• Budget allocation for an earnout
____________________________________________________________________________
This episode is sponsored by our products DealRoom and FirmRoom
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at dealroom.net.
FirmRoom is the fastest virtual data room used to get deals done. Leave the pay-per-page world behind by going to firmroom.com
00:00 Intro
06:02 Getting into M&A
07:14 First deals and their drivers
10:43 Second Acquisition
14:49 Third Acquisition
18:43 Understanding the cultural aspect
25:17 The new deal approach
29:10 Strategizing acquisitions
32:07 Validating assumptions before acquisition commitment
38:14 Budget allocation for an earnout
41:37 Craziest thing in M&A
Aaron Whiting, Chief of Staff at Crownpeak
Value creation in any acquisition relies heavily on how well the M&A integration goes. By focusing on integration, buyers can increase their chances of success in obtaining and realizing their intended synergies. But how well can it go if the company’s integration lead is a first-timer?
In this episode of the M&A Science Podcast, Learn the basics of M&A integration execution, with Aaron Whiting, Chief of Staff at Crownpeak.
You will learn:
How to coach a first-time integration leader
Getting ready for day one
Kickoff meeting strategies
Challenges during integration
Setting alignment for kickoff meetings
____________________________________________________________________________
This episode is sponsored by the M&A Science Academy, DealRoom, and FirmRoom.
To join our growing online community of M&A practitioners, visit www.mascience.com/academy.
Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at www.dealroom.net.
FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience. Sign up in under 2 minutes by going to www.firmroom.com
Episode Bookmark
00:00 Intro
05:09 Coaching an integration lead
06:33 Involving the Integration Lead
12:42 Integration on Day one
17:49 Getting ready for Day one
22:31 M&A teams to pull in for integration
25:41 Kickoff meeting strategies
31:12 Maintaining regular cadence for good progress
35:53 Umbrella track
37:47 How to track integration activities
42:38 Challenges during integration
47:55 Mechanical things that could go wrong during integration
52:59 Setting alignment for kickoff meetings
56:26 What success looks like through stories
01:01:50 How to know when the integration is complete
01:03:42 Advice for first timers
01:07:48 Craziest thing in M&A