Understanding M&A Deals

Kison is a man who’s studied every aspect of deal-making in M&A, including corporate M&A. In this episode, Kison shares helpful problem-solving techniques in deals. This is definitely an episode you don’t want to skip!

Best Practices That Could Apply Across M&A Spectrum

It’s now about the finance-focused M&A approach — concentrating your resources on building a financial model to create a business case and doing the deal. Then you go from there to executing a series of templates, checklists, and playbooks on the agreement. Kison mentions the old ways aren’t completely ruled out as it is still effective if you’re trying to buy factories or hard assets.

  • You need to initiate changes. You also need to understand these changes may lead to a disconnect and frustration among team members. Avoid getting yourself in this situation; that is why you shouldn’t be all about the finance-focused M&A approach. You need to develop a great emphasis on moving towards the people-focused M&A approach.
  • In whatever you do, have your team in mind. Start with a couple of elements to see the level of productivity you can achieve. You don’t want to go through the journey with a team that doesn’t believe in the project. An uninspired team can wear you down, and you need to set the tone right from the start.
  • You need to maintain clarity on your goals. YOU as a business owner needs to understand every team member should have a vivid understanding of what the business is all about. Also, have in mind a goal has a limited value when it’s vague.
  • You need to validate the financial model and make it realistic. You can identify the stakeholders that fit your models and get them involved. Make sure you update them as you go through the process and continue to validate your assumptions. A bad financial model could lead to failure.

The definition of failure is very vague in the industry. The meaning of failure always goes back to the original financial model — the investment plan they have for the deal. Most times, failure isn’t a total implosion; it may be success that took longer.

Threats In M&A

The important thing to focus on is the capability to create value, and we mostly lose sight of that.

Of course! None of these matters if you don’t understand the organization’s value. Executives from both sides should spend time understanding the organization’s value. Understanding the values allows you to understand the organization’s culture, leadership approach, decision-making, and problem-solving model. That’s when you get a sense of “what are some of these differences that could be complementary,” and many more important questions that will inform your decision on the deal.

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Corey Kupfer is an expert strategist, negotiator and dealmaker with 30+ years of experience. He is also the creator and host of the DealQuest Podcast.

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Corey Kupfer

Corey Kupfer

Corey Kupfer is an expert strategist, negotiator and dealmaker with 30+ years of experience. He is also the creator and host of the DealQuest Podcast.

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