How to Work with Business Leaders to Build an M&A Strategy

"You're either setting yourself up for success or failure based on the relationship you have with the business sponsor."

Incentivizing Business Leaders

On this episode of M&A Science, Kison interviews Michael Frankel, Senior Vice President Managing Director at Deloitte New Venture Accelerator, and Justin Goldman, Senior Vice President, Strategic Finance and Corporate Development at MediaMath, about how to work with the business leader to build an M&A strategy.

They discuss how one of the biggest problems working with business leaders is that think they can do M&A on their own.

They lack the knowledge that M&A doesn't end after the deal closes and that it will require a lot more of their time than they can give because they have day jobs.

One strategy to get alignment and focus from your business leaders is to bring them together for a day with no laptops and cellphones. This will allow you to develop a clear action plan and start a discussion about the deal uncertainties.

Motivation is another significant factor for business leaders. You have to keep them motivated and accountable for the deal post-close.

Ensure you have very realistic expectations around financial performance and operational goals so that they take the business case seriously.

The fastest way for a business leader to lose motivation is to feel like their goals are unachievable.

The worst thing that can happen is when the business leader starts doing unforeseeable things to achieve those numbers and goals that hurt the deal and lose value. Make sure your goals are clear but also have a backup plan in case your initial goals become unrealistic.