Brett Shawn, Senior Vice President, Assistant General Counsel at Warburg Pincus LLC In M&A;, time is the enemy. The longer a deal takes to close, the more risks it poses for both parties. Both the buyer and the seller need to understand the deal risks and how to mitigate them.  In this episode of the M&A; Science Podcast, Brett Shawn, Senior Vice President, Assistant General Counsel at Warburg Pincus LLC, talks about risk allocation between signing and closing an M&A; deal.  Liked today's episode? Unlock over 50 courses taught by top-tier M&A; practitioners by joining the M&A; Science Academy. Use code “podcast” on the sign-up page for a 20% discount, available on either monthly or annual plans. https://www.mascience.com/academy Want to learn about upcoming interviews, events, and industry trends? Sign up for our weekly newsletter. https://www.mascience.com/newsletter-signup  If you’re a head of corporate development and looking to build up a world-class M&A; team, reach out to me at kison@mascience.com. This episode is sponsored by FirmRoom, the fastest virtual data room used to get deals done. Leave the pay-per-page world behind by going to https://firmroom.com/

Risk Allocation Between Signing and Closing an M&A Deal

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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 ****************** 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;  

How to Close M&A Deals in 30 Days

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 ****************** 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;  

Executing the Roll Up Strategy in the Tech Industry

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   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 ****************** 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;  

Building Corporate Development Muscle

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 ****************** 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 Start Executing the Roll Up Strategy 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 ****************** 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;

Risk Allocation Between Signing and Closing an M&A Deal

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