My guest today is Tom Klein, former Morningside Co-CEO alongside recent podcast guest Roland Lessard. This episode with Tom acts as a part two pairing with our February episode with Roland where we talked about M&A value creation after close. Tom and I today discuss M&A value creation largely pre-close of add-ons, talking through industry selection, sourcing methodologies, industry knowledge snowballs, building a reputation, and working with lender partners. Tom has been involved in 12 M&A transactions across Morningside and his previous experience in background screening.
As an aside to you the listener, I’m really enjoying recent discussions on M&A value creation and consolidation strategies. If this is an expertise of yours or someone you know, I’d love to connect and chat more so please reach out.
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Links:
Tom on LinkedIn
Greenwich Point Capital
Topics:
(00:00:00) - Intro
(00:04:37) - Deep focused search approaches vs. scattershot approaches
(00:11:18) - What numbers and measurements do you use when determining interest in an industry?
(00:20:42) - How do you think about proof of success when examining companies within an industry?
(00:28:29) - What are some of your favorite ways to research an industry?
(00:34:11) - What are the key characteristics of a business you need to see when acquiring?
(00:39:47) - What are some industries you were close to investing in but passed on?
(00:43:50) - What do you start looking for once you’ve finalized a platform acquisition?
(00:54:50) - What are some key questions you ask sellers?
(01:01:35) - What do you look for in lenders?
(01:18:30) - Advice for folks pursuing consolidation thesis’
