In M&A, relationships are everything. Particularly for professional services firms like Wipfli LLP, their deal rationale is to retain the people and the clients of the target company, which is only possible if they have good relationships from the beginning.
The main role of a CFO is to be a strategic advisor to the CEO, deciding the best use of capital, at any given moment, inside a company. Because of this, they play a crucial role in the hierarchy of deal approval, as M&A is not always the best use of resources, depending on the buy plan.
Chief Financial Officers (CFOs) play a pivotal role in shaping the destiny of strategic ventures. Beyond their traditional financial responsibilities, these financial architects hold the key to unlocking the full potential of mergers and acquisitions.
Too often, corporate development practitioners want to change their scenery and end up switching to private equity. It’s a place where they can use their existing skills, and enjoy what they do, without certain restrictions present in a corporate setting. But what are the differences between the two industries? In this interview, Joe Metzger, Managing Director at 777 Partners, shares his amazing journey shifting from corporate development to private equity.
The healthcare industry is a complex and rigid space where change is often rejected. Any evolution in this sector not only signifies business decisions but also influences the overall quality and accessibility of patient care.
Integration is not just about combining processes and systems. It is about bridging cultures and creating a shared identity. However, integrating two organizations can be complex, especially when it comes to managing major cultural differences.
For venture capitalists, one of the best scenarios is for the portfolio company to be acquired to maximize investment returns. Learn how to prepare for an exit through regulatory approvals, gaining market traction, and how your role as an investor can impact an exit.
The collaboration between a Private Equity (PE) firm and a portfolio company during an acquisition is a powerful partnership. Together, they create a synergistic environment where growth and value thrive.
For high-growth companies, M&A is almost inevitable. If done right, it could speed up growth and open new opportunities for the acquiring entity. However, it’s not without challenges, as it can also be destructive and destroy both companies involved.
M&A is a massive undertaking that calls for collaboration among numerous individuals. Ensuring alignment with everyone involved is essential for the success of a deal. Yet, with a variety of opinions and personalities at play, achieving alignment can be quite a challenge.
International business transactions often present unique challenges that are vastly different from local ones. The complexity increases exponentially when these transactions involve mergers and acquisitions.
Many complexities are caused by the different tax structures of the parties. Usually, the best structure for one party will almost always be bad for the other. The deal can get complex quickly, so both parties must engage with a tax advisor before negotiating the term sheet.
International deals are one of the most challenging transactions to execute. Aside from the complexities of M&A, there are additional hurdles that acquirers must overcome to successfully acquire companies overseas.
Only a few believe that an equal merger is possible, especially considering the power struggle between the two companies. However, a merger of equals can be a powerful strategy that could unlock tremendous value and opportunities for growth if done right.
In today's highly competitive business landscape, companies are constantly looking for ways to enhance their capabilities and maintain their edge. With so many competitors in the market, how can a company stand out and reduce customer churn?
In big companies, some business units may not perform well and might be overlooked. It can be helpful for the company to find a more suitable owner for these units. At the same time, buyers can take advantage of these opportunities to improve their businesses and maximize their potential.
There are many different reasons why companies buy other entities. Traditionally, acquirers have focused more on the financial aspect of the target company. However, experience has shown that not all acquisitions are the same, and must be executed properly against their strategy.
To perform M&A at the highest level, an ever-evolving M&A function is necessary. Organizations must focus on refining their strategies, processes, and team dynamics to ensure they can effectively navigate the complexities of each deal.
Mergers and acquisitions (M&A) is a long and tedious process filled with challenges and surprises that could harm the acquiring company or destroy the deal altogether. To ensure a successful transaction, it's crucial to identify and overcome these hurdles.
M&A is inherently risky, but the rewards of a successful deal can exponentially grow a company overnight. There are many things to consider before closing a transaction, and big companies are finding new deal structures to minimize risks when doing acquisitions.
According to Mark, regulators are now more aggressive when reviewing deals, with the intention of slowing down or stopping acquisitions. They are now less predictable and less reliant on historical precedent.
Acquiring companies can be extremely rewarding if done right. To be proficient in M&A, a dedicated function must be established for continuous improvement. As the M&A function evolves, it increases the chances of deal success and value creation.
M&A integration is usually made up of checklists that outline the step-by-step agendas and milestones to successfully integrate the acquired company. But during integration, things don’t always go as planned, and teams must be able to pivot and adapt to the ever-changing needs of the project.
By prioritizing M&A integration, corporate development teams can reap the benefits of their strategy and quickly grow the organization. However, despite its potential, M&A integration is frequently neglected.
Cultural fit has become increasingly important, as more companies are embracing diversity and inclusion, and acquirers must mitigate cultural differences early on during post-close integration. When two companies fit together, people are more likely to be productive and satisfied with their work.
According to PJ, there has never been more uncertainty in the market than there is today. The COVID-19 pandemic has provided a false sense of direction, and the market is currently experiencing a reset, especially in the world of tech. There is a much greater emphasis on quality.
A roll-up is a powerful deal type that involves acquiring multiple smaller companies to combine them into a large entity. When properly carried out, these strategic actions can significantly increase shareholder value and set up companies for record-breaking development.
As the business world shifts towards a more environmentally and socially conscious approach, the significance of sustainability in M&A has become increasingly prominent. In light of this, companies are now considering the environmental, social, and governance (ESG) initiatives of their target companies before making any acquisitions.
M&A is a game-changing tool that can propel a company's growth several years ahead of schedule. However, for hyper-growth companies, M&A can also be a double-edged sword that leads to attrition and detracts from the core business objectives.
The go-to-market (GTM) integration strategy has a large impact on revenue generation and overall deal success. Integration can be very disruptive to the customers, but if done right, it can enhance the customer experience and acquisition results.
M&A integration in tech has changed quite a bit over the last twenty years. Integration has evolved from integration volunteers, to large teams with detailed tracking, to dedicated teams and Agile approaches.
Acquisitions present unique challenges, but deal lifecycle processes can still be optimized for efficiency. Timeliness is a crucial factor in M&A, and the quicker a deal closes and integration is completed, the faster deal synergies can be achieved.
M&A is a tedious process that has a lot of moving parts. M&A requires attention to detail and communication with different stakeholders in the company. So what do you do when you are the one person in charge of everything?
Acquiring a company is complex and challenging, and in some instances, unnecessary. If buyers only need the people inside of a target company, they can do an acquihire instead of a traditional acquisition.
Before buyers and sellers agree to an LOI, there are many informal conversations that happen in the background. Buyers must carefully approach any informal conversations to avoid turning a buyer off while still securing the deal.
The initial conversations with a potential target should build trust and strengthen the relationship. These conversations allow the buyer and seller to get to know each other and explore possibilities of working together.
M&A is an excellent tool for growing a company. Still, acquirers should consider a variety of strategies before committing to a transaction. Choosing the right growth approach also dictates any integration plans.
There needs to be alignment from both sides of a deal to have a smooth integration process. Integration never goes as planned, but there are things that teams can do to make it much easier for everyone involved.
There are different ways to create and grow a business: build up from scratch, acquire another company, or gain strategic alignment with other companies through partnerships. Through a partnership, a business can leverage someone else's technology for faster growth.
Auction processes in M&A are very challenging for strategic buyers and corporate development teams need more than a compelling offer to compete in an auction. Speed can be a differentiator, which can help edge out the competition.
For a business to be successful in the future, integration must be the focus of everyone involved in the deal. The goal is to ensure business continuity while maintaining the target company's integrity and core.
A reverse auction is a process where the buyer broadcasts their interest in acquiring a specific type of company in the market and engages with potential targets. Sellers will then line up to apply in the hopes of getting picked by the buyer for the acquisition.
With proper planning and the right approach, revenue synergies can help teams achieve their deal thesis. The acquired sales operations team knows their customers and products better than anyone, and acquirers should consider their opinion on the go-to-market integration plan.
Often organic growth is not enough to achieve the business strategy, and that's where M&A comes in. Corporate development finds the gap between the current state of the business and its objective to look for inorganic growth opportunities.
The sales operation is the cornerstone of every business. Without it, companies would not have revenue. If a company purely relies on inbound sales, it's time to create an outbound pipeline and actively generate demand by using marketing and events.
Selling a business is a difficult task that requires a lot of planning and preparation. However, most entrepreneurs refuse to entertain the idea of a sale until it is too late. The best time to plan an exit is when times are good, not in a desperate situation.
Getting alignment early on from all leaders will help increase deal success. Leadership alignment means both leadership teams are aligned on communications, change management components, strategy, and transaction execution.
The finance team holds a huge responsibility in M&A and must conduct diligence effectively. The finance team leads the due diligence process and must be involved as soon as the acquirer gains access to the data room.
Creating a solid strategy requires collaboration between the strategy team, corporate development, business leaders, and executives. If done right, M&A is a powerful tool that can drive business value.
Revenue synergies are one of the most challenging metrics to achieve during integration, but are also the primary reason companies buy businesses. It's safe to say that many transactions fail to realize their intended value.
Companies are bought to achieve revenue synergies in new markets. Getting the GTM integration just right should be a top priority. The go-to-market is one of the most critical parts of any integration, and knowing the challenges will help.
Unforeseeable things always happen during integration, and the best thing to do is to pivot, solve the problem, and move on. Ensure that everybody's working to their optimal level and that decisions are made with the best possible information.
You need a comprehensive, well-documented change management plan because the process never runs perfectly. Make sure that everyone understands the message, who is delivering it, when to convey it, and how to deliver it.
Risabh prefers targeting companies that are not for sale because if there are more interested buyers, valuation goes up, and the success ratio of securing the deal goes down. Furthermore, proprietary deals are much faster than going through an auction.
Any serious acquirer knows that inbound deals are not always the best way to get leads. Proactively sourcing deals is the best way to approach M&A. In this webinar, Jeremy Segal, EVP, Corporate Development at Progress, teaches us how to source deals and build a pipeline.
Traditionally, corporate development professionals come from banking roles. And while nothing is wrong with that, it is always fascinating to hear other ways that professionals start their M&A careers. Sharing his career development in M&A is Caleb Shafer, Corporate Development Associate at RS Group plc.
It doesn’t matter if you buy the best company in the world, if integration is not done properly, the value will be lost. In this webinar, Jim Buckley, Vice President, Mergers and Acquisitions Integration at VMware, talks about how to run an integration-led confirmatory diligence process.
M&A is a fascinating career path, and traditionally there are only few entry points. Banking roles are the most common entry point to M&A, but recently, we have seen an increase in practitioners coming from different backgrounds. Kayla Davis, Vice President, Head of M&A at ABM Industries, went from accounting to M&A, and in this webinar, she shares her journey and key lessons learned along the way.
The importance of integration has never been more prevalent. And standing up a dedicated function to oversee integration is becoming more of a necessity as a company grows more prominent. In this webinar, Ian Burk, EVP of integration at Upland Software, talks about how to stand up an IMO.
From zero revenue to a billion-dollar market capitalization, Upland Software has exponentially grown its business through acquisitions. How did Upland Software do it? In this webinar, Austin Woody, explains how to grow purely on acquisitions.
To be a strategic acquirer, it’s important to have your own proprietary source of deals. There are certain considerations to look at so that the target matches the overall strategy. Learn more in this webinar with Scott Hile.
In this episode of the M&A Science Podcast, Sreepathy Viswanathan, Chief Corporate Development Officer, HGS Healthcare, who has 25 years of experience in corporate development, talks about how to build a thorough M&A strategy.
We all know that M&A deals don't end at closing and integration can take a long time. One key to success is having the right people oversee the deal post-close. Tomer Stavitsky, Corporate Development, M&A Lead at Intuitive Surgical, talks about creating the right governance structure in an M&A deal.
In this episode of the M&A Science podcast, Tim Wentworth, shares his experiences as CEO when Cigna bought Express Scripts for $67 Billion, and how leadership and culture made the transaction successful.
Selling your business isn’t easy and many complexities come with the process. In this interview, Noah Waisberg, Co-Founder & CEO of Zuva, talks about his selling experience and the challenges the deal presented..
According to Charles, there are three types of people in the M&A industry: industry experts, deal experts, and integration experts. When you are standing up your M&A function and hiring your head of corporate development, the acquisition strategy needs to dictate your hiring.
The first step to creating a better people experience is understanding the target company’s culture and your own. In this week's podcast interview, Klint Kendrick, Chair of the HR M&A Round Table, talks about how empathy, strategy, and integration can all contribute to a better people experience in M&A.
When building your GTM plan, you have to start with your baseline deliverables. What are the things that need to happen for the functions to be fully integrated? In this interview, Gwen Pope, Head of Global Product M&A at eBay, talks about how to create a successful M&A GTM plan.
In this episode, Sabeeh Khan, Director, Corporate Strategy & Development at Syniti, and Aaron Whiting, M&A Strategic Programs at ContinuumCloud, talk about how to manage an entire M&A deal, from sourcing, diligence, and integration.
On this episode of M&A Science, Trish Mosconi, Executive Vice President, Chief Strategy Officer & Corporate Development at Synchrony discusses how to stay true to culture during a deal. In the interview, she talks about how her team walked away from an almost perfect deal due to cultural differences.
Cisco is one of the largest and most successful acquirers in the world. On this week's episode of the podcast, Karen Ashley, VP of Corporate Development Integration at Cisco, shares how to fully commit to integration from start to finish. Karen shares their process at Cisco, how to have commitment and acquisition strategy alignment meetings, and the success metrics they use very early in the process.