“The worst thing is not to discuss (integration) at all. You’re setting yourself up for failure.”
Common reasons small companies get destroyed in M&A
On this episode of M&A Science, Kison interviews Carlos Cesta, Vice President of Corporate Development at Presidio, and Jeff Desroches, Vice President of Strategy and Corporate Development at VAT Group about why small companies often get destroyed during M&A.
They discuss why big companies acquire small ones in the first place, how small companies can protect themselves during a deal, and the common issues that result in a small company getting destroyed.
Learn how having empathy when approaching a deal can make a difference in outcome, why deal fever can be dangerous to the success of an organization, and why beginning the integration planning process early on in a deal drastically improves the success of M&A.
Jeff and Carlos educate Kison on what the early integration planning process entails and how to run integration SWOT teams.
Show notes:
00.00 - Intro
1.27.60 - Background
2.32.84 - Why Do Big Companies Destroy Small Ones
4.50.21 - Why Big Companies Buy Small Companies
7.12.08 - Common Problems Why Small Companies Get Destroyed
10.36.43 - Relationship With the Entrepreneur Post-Close
13.03.61 - Empathy When Approaching Small Companies
17.32.59 - How can Small Companies Protect Themselves
20.00.63 - Deal Fever
22.26.61 - Integration Team Early in the Process
25.27.27 - Process of Planning for Integration Early
30.28.94 - Integration SWOT Teams
33.58.73 - Craziest Thing in M&A