E8: Starting from Zero - M&A Function Basics

In/Organic Podcast

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-36:17

E8: Starting from Zero - M&A Function Basics

Christian Hassold

Jan 24, 2024

Transcript

In this episode, our host Christian Hassold is joined by Loran Gutt, VP of Corporate Development at Auctane, a Thoma Bravo-backed SaaS company that powers shipping businesses all over the globe. In this episode, Christian and Loran walk through building an M&A function from scratch with a SaaS company. Topics they cover in this episode include who should run the M&A function, what kind of support will they require, what is the leadership’s role in the M&A process, how to inform M&A strategy, and working with financial sponsors. Laurent shares valuable insights and lessons learned from his 10-year career in corporate development.

Discussion Topics

Building an M&A function in a company requires a team that includes an M&A lead and a project manager.
When selecting an M&A lead, look for someone with intellectual curiosity, an open mind, and the ability to communicate effectively with the rest of the C-suite.
When deciding whether to build, buy, or partner, consider the market landscape, the cost and complexity of building internally, and the potential value of partnerships or acquisitions.
Utilize the resources of financial sponsors, such as their financial modeling expertise and access to expert networks.
Avoid insular thinking by engaging with customers, attending industry events, and seeking input from external sources.
Use tools like Gong and Chorus to gather data and insights from customer calls and internal meetings.
Be aware of potential pitfalls, such as lack of pre-planning for M&A integration, not conducting red team/green team exercises, and not celebrating the work done even if a deal falls through.

Highlights

[00:00] Introduction

[02:12] Loran Gutt's Career in M&A

[06:40] Building the Inorganic Strategy Team

[08:44] Traits of an M&A Lead

[12:11] Deciding to Build, Buy, or Partner

[17:10] Using Expert Networks and Tools

[18:18] Testing Buy and Partner Scenarios

[20:51] Avoiding Insular Thinking

[23:41] Utilizing Gong and Chorus

[26:06] Using Financial Sponsors' Resources

[32:07] Pitfalls to Avoid