Episode 11 - M&A Science Podcast, Interview with Jeff Bender
Aug 17, 2021
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Jeff Bender, the CEO at Harris, dives into the complexities of managing large-scale M&A investments with over 150 transactions under his belt. He clarifies the differences between platform and tuck-in acquisitions, emphasizing the emotional journey owners face during transitions. Bender also shares insights on the balance between centralized and decentralized operations to enhance efficiency. With a touch of humor, he reflects on unique M&A experiences, highlighting the importance of communication and mentorship in navigating these intricate processes.
Jeff Bender highlights the importance of efficient tools like Dealroom to streamline M&A processes, enhancing collaboration and focus on value creation.
Continuous learning from experience is vital in M&A, with leaders needing to strategically invest their Time, Energy, and Attention for improved outcomes.
Flexibility in M&A strategies allows companies to accommodate tuck-in acquisitions alongside platform investments, fostering innovation and aligning with customer needs.
Deep dives
The Importance of Efficient M&A Management
Managing mergers and acquisitions (M&A) effectively can save organizations significant time and effort. The discussion highlights the need for efficient tools, like Dealroom, to help streamline tasks such as tracking and reporting. A well-organized process eliminates redundant work, allowing deal professionals to focus on value creation rather than administrative burdens. This shift in focus ultimately enhances collaboration and accelerates the realization of M&A value.
Learning Through Capital Deployment
The experience of Jeff Bender with over 150 acquisitions reveals that the learning curve in M&A is steep and ongoing. Bender emphasizes the importance of 'Time, Energy, and Attention' (TEA), encouraging leaders to be conscious of where they invest these resources. Insights gained from hands-on experiences contribute significantly to understanding capital deployment effectively. This continuous learning allows professionals to refine their strategies and improve subsequent acquisitions.
Flexibility in M&A Strategies
Flexibility within M&A strategies is crucial, especially when deciding between platform investments and tuck-in acquisitions. Bender describes his organization’s willingness to acquire competing companies and allow them to operate independently, which can enhance innovation. The approach focuses on understanding customer needs rather than enforcing synergies that may not yield additional value. This flexibility can lead to a more successful integration and stronger market presence.
Building Long-term Relationships for Deal Sourcing
Sourcing deals effectively involves nurturing long-term relationships with potential sellers rather than relying solely on immediate transactions. Bender explains that building trust and maintaining communication can take years, as the average time from identifying a prospect to closing a deal can stretch to four or five years. The organization also actively engages with brokers and advisors to keep them informed about what types of investments they seek. This dual approach to relationship-building ultimately positions the company favorably when opportunities arise.
Post-Acquisition Learning and Integration
Post-acquisition reviews are essential for learning from past experiences and refining future strategies. Bender highlights the practice of conducting a thorough assessment of assumptions made during the acquisition process a year after the deal closes. Sharing mistakes and successes among teams fosters a culture of continuous improvement. This proactive approach to integration ensures that the organization not only adapts its practices but also enhances overall effectiveness in capital deployment.
What does it take to manage M&A on a large scale? We're going to find out as Jeff Bender, CEO at Harris, shares what their entire process looks like and how they manage massive volumes of M&A investments in their organization. In this episode you'll learn about:
- Platform vs. tuck in transactions
- The centralized structure of services at Harris
- Business development at a high scale
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