M&A Science

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

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

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

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

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

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

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

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

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

11:17 What is strategic due diligence

16:25 How to perform strategic due diligence in M&A

25:00 Entering the right market

38:05 Finding the right target company

41:25 When to perform strategic due diligence

42:38 Proactive vs. Reactive deal sourcing

44:33 Importance of culture

47:05 When to start integration planning

49:11 Red flags during strategic diligence

50:33 Assessing incoming people

51:20 Biggest challenge when performing strategic diligence

George Kellerman, VP, Head of Investments & Acquisitions at Woven by Toyota and Alexander Baum, Corporate Development Lead at Woven by Toyota

In the ever-evolving world of business, staying ahead isn't just about what a company does today, but how it prepares for tomorrow. This is where a venture capital arm comes into play. It is a specialized division within a larger company that focuses on investing in emerging startups and innovative projects.

In this episode of the M&A Science Podcast, George Kellerman, VP, Head of Investments & Acquisitions at Woven by Toyota, and Alexander Baum, Corporate Development Lead at Woven by Toyota, share their experience on how to stand up a venture capital arm.

Things you will learn:

• How did Woven by Toyota got started

• Successfully start a venture capital arm

• Leadership in managing people

• Biggest Lessons Learned

• Dealing with cultural difference

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

*George Kellerman

00:00 Intro

06:15 From firefighter to M&A

09:49 How did Woven by Toyota got started

11:19 Project Kate

12:58 Pitching the shift in strategy

14:31 Woven Capital's strategy

16:48 How to successfully start a venture capital arm

19:45 Leadership in managing people

22:03 Biggest lessons learned

26:00 A change in strategy

27:04 The Woven City Project

31:11 Dealing with cultural difference

35:40 Craziest thing in M&A

*Alex Baum

39:34 Noticing cultural differences in Japan

42:11 Relocating to Tokyo

44:07 New York vs Japan culture

45:28 Work culture in Japan

48:32 Rubber stamp approval in Japan

49:51 Balancing American and Japanese culture

51:27 Maintaining alignment

52:09 Craziest thing in M&A

Camilo Franco, Director, M&A Integration and Operations at Jamf

There is an intimate tie between M&A strategy and corporate strategy. To be truly effective, acquisitions must directly support the overarching goal of the company. But beyond that, there needs to be a strategic alignment with everyone involved.

In this episode of the M&A Science Podcast, Camilo Franco, Director, M&A Integration and Operations at Jamf, shares their secrets on how to achieve strategic alignment from top to bottom.

Things you will learn:

• How to achieve strategic alignment

• Strategies for effectively communicating M&A plans

• Tools used to maintain alignment

• Connecting diligence and Integration

• Advice for integration practitioners

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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

08:45 Definition of strategic alignment

10:31 How to achieve strategic alignment

12:51 Relaying M&A strategy against corporate strategy

13:54 Getting buy-in from team members

15:37 Overcoming anti-M&A culture

18:44 Strategies for effectively communicating M&A plans

21:21 Alignment with the integration team

23:51 Formulating the integration thesis

26:37 Role of steering committee

28:04 Communicating decisions with the broader organization

29:30 Managing integration without IMO

32:09 Ensuring company readiness for integration

34:11 Gauging M&A readiness

36:06 Side effects of burnout people

37:25 Defining the end of integration

39:30 Tools used to maintain alignment

43:32 Agile M&A

44:46 Connecting diligence and integration

48:13 Using integration templates

50:36 Advice for integration p

Ken Bond, Head of Corporate Development at Cetera Financial Group.

Most of the biggest M&A failures of all time are caused by culture clashes. Both companies cannot simply co-exist with each other, and instead of creating more value, they destroyed both of their businesses. This is why cultural due diligence is crucial in M&A.

In this episode of the M&A Science Podcast, Ken Bond, Head of Corporate Development at Cetera Financial Group, shares his expertise on how to perform cultural due diligence to better understand the target company.

Things you will learn:

• The person responsible for cultural due diligence

• Executing cultural due diligence

• Using Playbooks

• Successful partnership between Corporate Development and Integration

• Advice for practitioners

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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 www.dealroom.net.

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Episode Bookmarks

00:00 Intro

05:11 Person responsible for cultural due diligence

05:54 Importance of cultural due diligence

08:08 Executing cultural due diligence

10:29 Killing the deal due to cultural conflict

14:54 Using Playbooks

17:31 Cultural due diligence during early conversations

20:12 Understanding how the target company makes decisions

22:40 Things to look for during due diligence

25:09 Using questionnaires for cultural due diligence

27:08 Bilateral deal vs. Auction process

30:10 Hardest part of cultural due diligence

32:27 Successful partnership between Corporate Development and Integration

35:33 Subculture due diligence

37:07 Advice for practitioners

38:31 Craziest thing in M&A

Baljit Singh, Former SVP, Global Head of Corporate Development at Nielsen Ventures

Engaging in M&A activities just for the sake of doing them is one of the biggest reasons for failed deals. Without a well-defined purpose, these transactions can distract the business and waste massive amounts of resources.

In this episode of the M&A Science Podcast, Baljit Singh, Former SVP, Global Head of Corporate Development at Nielsen Ventures, discusses the importance of strategic alignment between M&A and corporate strategy.

Things you will learn:

• Corporate strategy vs M&A strategy

• Getting the strategy right

• Capital allocation

• Measuring business unit's success

• Deal structure to preserve cash

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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

05:10 Corporate strategy vs M&A strategy

09:25 Getting the strategy right

11:17 Best ways to pitch deals

13:09 Pillars of corporate strategy

15:50 Capital allocation

21:06 Measuring business unit's success

24:52 Holding business units accountable

27:20 Why take a public company private

33:51 Steps to take a public company to private

38:11 Real life examples

48:29 Deal structure to preserve cash

54:45 Dealing with reluctant seller

59:30 Craziest thing in M&A