Ben & David are joined by special guest Taylor Barada, VP and Head of Corporate Development & Strategic Partnerships at Adobe, to discuss how large tech acquirers approach buying companies. This episode is full of great insights for startups & entrepreneurs who might find themselves navigating the M&A process, as well as anyone curious about the craft of dealmaking and the strategic approach of large acquirers.
How conversations begin between startups and acquirers
The importance of building a relationship with acquirers over time and "investing in lines, not dots” (just like raising VC)
The often under-appreciated role of culture fit between acquirers and acquisition targets
How entrepreneurs should evaluate acquirers throughout the M&A process
Two examples of successful acquisitions Taylor completed at Yahoo in Citizen Sports and IntoNow
The M&A process at large technology acquirers, from initial conversations to LOI, due diligence and the definitive merger agreement
The relative roles of Corp Dev, business/product owners and executive sponsors in the M&A process
Common mistakes startups (and VC’s) often make in the M&A process
Different “categories” of M&A that acquirers think about, and the relative risks & opportunities of “core" acquisitions vs transformative new businesses
What percentage of deals Adobe looks at actually happen, and the importance of being willing to say no
M&A as a tool for strategy, and the different M&A cultures & approaches at different companies
Tech themes Taylor and Adobe think about as part of their M&A strategy
Evaluating the longterm success of deals and the importance of the M&A integration function