SaaStr - Top 10 Learnings On What Getting Acquired is Like with Steve Mitzenmacher, Former VP Corp Dev, Own
The speaker, Steve Mitsen Mocker, shares insights from his experience in corporate development, focusing on the intricacies of getting acquired. He highlights that M&A is not just about having a great company but being at the right place and time, and navigating a complex process. Deals often fall apart due to misalignments, surprises in due diligence, or shifting priorities within the acquiring company. Understanding the buyer's motivations and managing the process proactively is crucial.
Steve emphasizes the importance of preparation before receiving a letter of intent (LOI). Companies should not scramble to clean up financials when an offer arrives. Building relationships with potential acquirers over time is vital, as M&A buyers track companies for years. During negotiations, it's important to manage expectations, be transparent, and leverage the final stages of the deal strategically. Post-acquisition, integration is challenging and requires careful planning to ensure success. Protecting employees and understanding cultural differences are key to a smooth transition.
Key Points:
- Preparation is crucial before receiving an LOI; ensure financials are in order.
- Build long-term relationships with potential acquirers; they track companies over time.
- Understand buyer motivations and manage expectations during negotiations.
- Leverage the final stages of the deal strategically to optimize terms.
- Post-acquisition integration is challenging; focus on cultural alignment and employee retention.