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

Kison Patel

Kison Patel is the Founder and CEO of DealRoom, a Chicago-based diligence management software that uses Agile principles to innovate and modernize the finance industry. As a former M&A advisor with over a decade of experience, Kison developed DealRoom after seeing first hand a number of deep-seated, industry-wide structural issues and inefficiencies.

CEO and Founder of DealRoom
"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.

Show notes:

00.00 - Intro

1.53.23 - Background

2.32.15 - Biggest Challenge of Corp Dev Role

5.29.58 - Biggest Challenge Working with Business Leader

8.39.93 - Business Sponsor Strategy

13.40.82 - Getting Business Leader to Focus on Strategy First

15.02.17 - Build-Partner-Buy Analysis

16.09.42 - Bringing the Buyer and Seller Together

18.50.07 - Incentivizing Business Leaders 

22.22.91 - Keeping Business Leaders Motivated

25.59.69 - Advice for Business Leaders

29.10.84 - M&A Needs to Transform

31.41.86 - A Story of How Important Integration is

33.34.70 - Transaction Advisors vs. Internal Teams

36.09.72 - Involving the Stakeholders in the Deal

37.40.40 - Achieving Your Vision

40.13.35 - Craziest Thing in M&A

44.45.20 - Outro

Contact M&A Science to learn more

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