M&A Science

Latest Episodes:

Top 10 Things That Make M&A Successful Jun 03, 2024

Show notes

Michael Frankel, Founder and Managing Partner of Trajectory Capital.

Here at M&A Science, our goal is to bring you the best and most effective techniques to improve your M&A practice.

In light of our 300th podcast episode, we have compiled the top 10 things that make M&A successful, together with Michael Frankel, Founder and Managing Partner of Trajectory Capital.

Things you will learn:

Alignment in the shared vision of the end-state
Cultural alignment
Reverse Diligence
Continuous learning and improvement
Empathetic leadership

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

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Episode Bookmarks

00:00 Intro 05:58 Alignment in the shared vision of the end-state 10:51 Cultural alignment 15:03 Joint Go-to-market planning pre-LOI 20:24 Parallel diligence and integration planning 24:33 Reverse Diligence 27:13 Communication strategy with stakeholders 32:37 Continuous learning and improvement 35:16 Anticipate functional challenges 39:52 Empathetic leadership 44:47 Proper preparation 47:56 Craziest thing in M&A

How to Close M&A Deals in 30 Days May 27, 2024

Show notes

Jeremy Segal, Executive Vice President Corporate Development at Progress (NASDAQ: PRGS)

When it comes to M&A, time is of the essence. As a buyer, it's best to identify whether to pursue the deal or not as soon as possible, to avoid wasting money and time. Also, if the seller is a good target company, procrastinating could lead to more competition.

In this episode of the M&A Science Podcast, Jeremy Segal, Executive Vice President Corporate Development at Progress, shares their strategy on how to close deals in 30 days.

Things you will learn:

• Initial conversations with the target company

• Price negotiations

• Preliminary due diligence list

• Deal specific adjustments

• Confirmatory due diligence

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

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Episode Bookmarks

00:00 Intro 04:16 Initial conversations with the target company 08:56 Price negotiations 12:33 Preliminary due diligence list 17:05 When to ask questions 18:34 People Involved 19:10 Sales and Go-to-Market 21:02 Revenue Synergies 23:43 Customer Journey 24:26 Surprises 27:40 Customer Success 28:46 Financials 32:11 Red flags in people 32:47 Information Technology 34:28 Legal 36:48 Marketing 39:19 Breakdown of COGS 41:30 Benefits Template 42:56 Operating Expenses 43:58 General 44:58 Deal specific adjustments 45:56 Processing the preliminary diligence information 47:11 Confirmatory due diligence 50:40 Craziest thing in M&A

Executing the Roll Up Strategy in the Tech Industry May 20, 2024

Show notes

Steven Freidkin, CEO and Founder of Ntiva, Inc. and Christopher Vollmond-Carstens, Chief M&A Officer at Ntiva, Inc.

In a highly fragmented industry, roll-ups are a great growth strategy. But integrating multiple entities can be difficult, especially if you don't have a proven framework. Ntiva has been successful in its M&A strategy and has completed 15 acquisitions as of today.

In this episode of the M&A Science Podcast, Steven Freidkin, CEO and Founder of Ntiva, Inc. and Christopher Vollmond-Carstens, Chief M&A Officer at Ntiva, Inc., share their strategy on how to execute the roll-up strategy in the tech industry.

Things you will learn:

• Creating value using a roll-up strategy

• Evaluating a target company

• Importance of recurring revenue

• Red flags pre-LOI

• Biggest advice for first-timers

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

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Episode Bookmarks

00:00 Intro

08:04 Creating value using roll-up strategy

12:38 Pitching to private equity

18:32 Evaluating a target company

22:30 Importance of recurring revenue

23:35 Customer Concentration

26:42 Challenges of doing roll-ups

30:36 Mismanaging M&A

37:52 Deal Sourcing

43:46 Red flags pre-LOI

46:53 Deal structure on roll-ups

51:52 Biggest advice for first-timers

52:46 Craziest thing in M&A

Building Corporate Development Muscle May 13, 2024

Show notes

Kyle Price, Chief of Staff & Corporate Development at Roblox

Creating a dedicated M&A function can be daunting for non-acquisitive companies. It's a big commitment that could take away valuable time and resources from top level management. However, when done right, corporate development muscle can be built slowly, and organically.

In this episode of the M&A Science Podcast, Kyle Price, Chief of Staff & Corporate Development at Roblox, shares his experience on how to start an M&A function slowly and successfully from scratch.

Things you will learn in this episode:

• When to build an M&A function

• Importance of the people side in M&A

• Working with business leaders

• Evolution of corporate development

• Handling biases in the M&A process

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Episode Bookmarks

00:00 Intro

04:10 When to build an M&A function

07:40 Challenges of a high-growth company doing M&A

08:45 Lessons learned along the way

10:39 Importance of the people side in M&A

12:57 Integration planning

14:39 Working with business leaders

16:42 Deal sourcing

17:24 Overcoming anti-M&A culture

22:04 Team alignment from functional leads

24:02 M&A surprises

25:59 Setting up new leaders for success

28:07 Evolution of corporate development

33:15 Measuring corporate development activity

34:20 Incentivizing the team

35:03 Handling biases in the M&A process

43:33 Craziest thing in M&A

How to Start Executing the Roll Up Strategy in M&A May 06, 2024

Show notes

Ivan Golubic, CFO | Corporate Development M&A at FastLap Group

Roll ups are a great strategy for highly fragmented industries. It allows the platform company to increase its size, capabilities, and market presence through the acquisition and integration of other businesses. However, it can be challenging without a proper framework.

In this episode of the M&A Science Podcast, Ivan Golubic, CFO, Corporate Development M&A at FastLap Group, shares his experience on how to start executing roll up strategy in M&A from scratch.

Things you will learn:

• Setting up the roll up strategy

• Valuation on roll up strategy

• Building the operating strategy

• Dealing with capital providers

• Biggest lessons learned doing roll up strategy

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Episode Bookmarks

00:00 Intro

03:01 Transitioning from Corporate Development to CFO

07:39 Setting up the roll up strategy

12:26 Importance of industry expertise

14:10 Proactive approach to expanding industry expertise

16:11 Valuation on roll up strategy

22:10 Building the operating strategy

24:54 Dealing with capital providers

28:37 Building your pipeline

30:45 Pitching to the PE firm

35:48 Explaining your M&A process to investors

38:46 Building your M&A team

40:42 Monitoring Cost

42:05Success metrics

49:25 Utilizing Technology

50:45 Importance of a unified platform

52:58 Biggest lessons learned doing roll up strategy

56:39 Future trends in the roll up space

57:33 Craziest thing in M&A

How to Create an Executable Integration Plan During Due Diligence Apr 29, 2024

Show notes

Jim Buckley, Vice President, Mergers and Acquisitions Integration at VMware

Integration planning is one of the most important aspects of M&A pre-close. Planning after the fact will cause massive delays and value leaks for the entire deal. It is why the integration team must be involved during the due diligence phase.

In this episode of the M&A Science Podcast, we will talk about how to create an executable integration plan during the diligence, featuring Jim Buckley, Vice President, Mergers and Acquisitions Integration at VMware.

Things you will learn in this episode:

• How to work as an integration leader

• Building an integration plan

• Pre-LOI integration planning

• Connecting diligence with integration planning

• Defining 'done' in M&A integration

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

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Episode Bookmarks

00:00 Intro 04:41 Navigating corporate transitions 08:31 Aligning the integration leader with the north star 10:02 How to work as an integration leader 11:25 The role of an integration lead 13:31 Building an integration plan 16:25 Focus on revenue and integration 18:51 Pre-LOI integration planning 25:08 M&A due diligence 27:37 Employee integration and customer satisfaction 29:56 Connecting diligence with integration planning 36:20 Approach to team collaboration 39:06 The details of integration plan 41:11 Complexities of M&A integration planning 44:57 Aligning with the target company 46:46 Defining 'done' in M&A integration 49:12 Integration teams leading due diligence 51:38 Leveraging diligence data for effective planning 53:13 Advice for M&A practitioners 55:45 Craziest thing in M&A

Uncovering Capital Allocation Strategies Apr 22, 2024

Show notes

Keith Levy, Operating Partner at Sonoma Brands

Every company must have a strong capital allocation strategy to maximize its potential. Without it, the company may end up missing opportunities and spending money on things that won't help it grow or become more profitable.

In this episode of the M&A Science Podcast, Keith Levy, Operating Partner at Sonoma Brands, shares his experience on successful and unsuccessful capital allocation strategies.

Things you will learn in this episode:

• Strategy vs IRR

• Venture capital vs recapitalization strategy

• Minority vs majority recapitalization

• Evaluating exit strategy

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

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Episode Bookmarks

00:00 Intro

11:27 Focusing on organic growth

16:37 Post-merger integration execution

25:01 Strategy vs IRR

26:59 Handling projections

28:07 Integration with Mars

36:20 Role of an operating partner

42:07 Big company vs Small company in M&A

43:39 Venture capital vs recapitalization strategy

48:44 Cashing out from an owner's perspective

50:42 Minority vs majority recapitalization

54:03 Impact of valuations and interest rates on investment decisions

59:07 Timing on investments

1:01:25 Evaluating exit strategy

1:03:46 Advice for practitioners

1:05:41 Craziest thing in M&A

Roll Up Strategy in Private Equity Apr 15, 2024

Show notes

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

Corporate Diversification Through M&A Apr 08, 2024

Show notes

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

Performing Strategic Due Diligence in M&A Apr 01, 2024

Show notes

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

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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