The Aid Market Podcast, hosted by Mike Shanley, explores USAID growth strategies, including bootstrapping, external investment, and mergers & acquisitions (M&A). Guests Keith Ives, CEO of Causal Design, and Santiago Sedaca, President of Empower International Development, share their experiences and insights.

Edward Williams,  partner at Williams LLP, joins the conversation to discuss legal considerations in M&A. The discussion concludes with Christy Hollywood, COO of Konektid, who provides a summary of the key takeaways.

Throughout the episode, guests share their experiences and insights on regulatory compliance, due diligence, and the importance of relationships in government contracting. The conversation also emphasizes the value of M&A for career opportunities and impactful development work, highlighting the legal and financial considerations involved. Clear communication, cultural fit, and market understanding are highlighted as crucial factors in ensuring successful acquisitions.

IN THIS EPISODE:

• [01:44] Keith Ives reflects on his educational and business background, culminating in his being a founding partner in Causal Design.
• [06:24] Keith discusses the importance of relationships and attendance at industry events. He also comments on the importance of independent CPA-reviewed financials. 
• [15:36] When should a firm start sponsoring events? 
• [18:23] Santiago Sedaca discusses mergers and acquisitions in the USAID market, and he reflects on the acquisition of his company by Palladium. 
• [25:20] Santiago describes the process of a merger or acquisition and how to prepare for them. 
• [36:17] Mike asks if localization plays into acquisitions, and Santiago comments on private equity firms buying up small businesses. 
• [41:46] Keith comments on not being a small business if acquired and doing a test run with contracts. Santiago points out that culture is a factor. 
• [46:52] Edward Williams describes what happens when a client wants to merge with or acquire another firm and whether there are additional complications if a non-US firm intends to acquire a US firm.  
• [55:54] Christy Hollywood shares her takeaways from today’s conversation. 

 

KEY TAKEAWAYS: 

• Building strong relationships with prime contractors and key players in the industry is crucial for success in the USAID market. Attending industry events and networking can open doors and create opportunities for collaboration.
• In USAID contracting and international development, successful mergers hinge on factors like net income, reputation, and strong market relationships. Cultural fit is vital, and post-acquisition success requires careful integration planning. The sector's low net income margins and minimal involvement of investments or private equity present unique challenges in M&A activities.
• The importance of understanding the "why" behind mergers and acquisitions, as it can be a mission-driven decision, not just a financial one. This understanding can provide opportunities for career advancement and better development work.

 

RESOURCES:

Aid Market Podcast

Mike Shanley - LinkedIn

Causal Design - Website

Keith Ives - LinkedIn

Santiago Sedaca - LinkedIn

Williams LLP - Website

Edward Williams - LinkedIn

Konektid - Website

Christy Hollywood - LinkedIn

 

BIOGRAPHIES

Santiago Sedaca Executive experience in thriving organizations (CARANA, Palladium, DT Global, Wise Responder) leading strategy, developing top performing teams, and managing large technical, business development and operations teams (1000+ people), producing market-leading financial results and social impact (managed $100 million+ P&L). Expert innovator in international development and commercial strategies in emerging markets, working across a range of disciplines with a strong track record in public-private partnerships, sustainability, innovative finance, private sector development, improved governance and natural resource management. Business Development track record, selling more than $700 million in new projects in the last ten years, with networks within USAID, FCDO, DFAT, MCC, DFC, multilateral agencies, and corporations, having worked in more than forty countries.

Edward Williams is a powerful and efficient advocate for his clients. Since 2015, Super Lawyer has rated him a Rising Star in the area of commercial litigation.An experienced attorney with a long history of success in trial practice and transactional matters, T. Edward Williams is a skilled business attorney who have litigated cases involving in variety of business litigation cases, including partnership and shareholder disputes, employment law, uniform commercial code law, oil and gas law, and securities law. Edward is also skilled in bankruptcy and international arbitration matters.Edward has represented American and foreign companies in matters involving the Defend Trade Secrets Act, the Foreign Corrupt Practices Act, among others.

Keith Ives is a project and policy leader passionate about evidence-based decision-making in development economics and humanitarian response. Before bringing the Causal Design team together, he consulted for The World Bank and worked for Georgetown University’s Initiative on Innovation, Development, and Evaluation (gui2de) designing mobile phone-based surveys and managing randomized trials in Kenya and Nigeria. Keith has designed evaluations for the Liberian and Rwandan Ministries of Agriculture, executed a growth diagnostic for the Kurdistan Regional Government, coordinated humanitarian responses in Haiti, Nigeria, and the United States, managed economic development projects in Kenya and Burkina Faso, and led Marines during Operation Iraqi Freedom.

Christy Hollywood supports Konektid clients and consultants with skills honed during 20+ years of leadership in international development, professional services, and consulting organizations. She led a successful consulting firm of her own for 11 years. Earlier, she served as Vice President for BD of Cardno (a large USAID and MCC contractor, since acquired) and held pivotal business development roles at KPMG’s Emerging Markets Group, RTI International, PATH, as well as Fidelity Investments and Noblis. A recognized expert in business development consulting, she’s authored several articles and is five-time invited presenter at international conferences on proposal management, competitive intelligence, and business development.