In this episode, our host Christian Hassold is joined by Laurent Gout, VP of Corporate Development at Auctane, a Thoma Bravo-backed SaaS company that powers shipping businesses all over the globe. In this episode, Christian and Loran walk through building an M&A function from scratch with a SaaS company. Topics they cover in this episode include who should run the M&A function, what kind of support will they require, what is the leaderships role in the M&A process, how to inform M&A strategy, and working with financial sponsors. Laurent shares valuable insights and lessons learned from his 10-year career in corporate development.

Discussion Topics

• Building an M&A function in a company requires a team that includes an M&A lead and a project manager.
• When selecting an M&A lead, look for someone with intellectual curiosity, an open mind, and the ability to communicate effectively with the rest of the C-suite.
• When deciding whether to build, buy, or partner, consider the market landscape, the cost and complexity of building internally, and the potential value of partnerships or acquisitions.
• Utilize the resources of financial sponsors, such as their financial modeling expertise and access to expert networks.
• Avoid insular thinking by engaging with customers, attending industry events, and seeking input from external sources.
• Use tools like Gong and Chorus to gather data and insights from customer calls and internal meetings.
• Be aware of potential pitfalls, such as lack of pre-planning for M&A integration, not conducting red team/green team exercises, and not celebrating the work done even if a deal falls through.

Highlights

[00:00] Introduction

[02:12] How Loran Started His Career in M&A

[06:40] Building the Inorganic Strategy Team

[08:44] Traits of an M&A Lead

[12:11] Deciding to Build, Buy, or Partner

[17:10] Using Expert Networks and Tools

[18:18] Testing Buy and Partner Scenarios

[20:51] Avoiding Insular Thinking

[23:41] Utilizing Gong and Chorus

[26:06] Using Financial Sponsors' Resources

[32:07] Pitfalls to Avoid

Connect with Christian & In/organic Podcast

Christian's LinkedIn: https://www.linkedin.com/in/hassold/

In/organic on LinkedIn: https://www.linkedin.com/company/inorganic-podcast

In/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featured

Connect with Loran Gutt on LinkedIn

https://www.linkedin.com/in/loran-gutt/

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