24 | 🚨 The Ugly Truth About M&A: Why Most Acquisitions Are Doomed 💀 with Michael Frankel (Trajectory Capital, Deloitte)

Michael Frankel, the founder and managing partner of Trajectory Capital, shares his extensive experience in handling over a hundred M&A deals across firms like Deloitte, Redbooks, & LexisNexis. 

In this episode of Good Revenue, host Neeta Bidwai and Michael discuss:

• The importance of preparation, having a clear strategy, and being proactive in sourcing opportunities.
• Complexities of M&A transactions, emphasizing the necessity of detailed planning and having a ‘playbook’ for both sourcing and integration.
• The significance of understanding both your own and your counterparty’s value drivers, advocating for honest self-assessment and open communication.
• Advice for companies in uncertain markets, emphasizing the benefits of prepping for sale and maintaining agility in business practices.
• Common pitfalls, especially for founder-owned businesses, and underscores the importance of having a successor ready.
• Strategies for corporate sellers, focusing on being clear about what you value in a sale and managing legal liabilities.
• Throughout, Michael stresses the need for alignment between corporate development and strategy to ensure successful execution of synergies.

The discussion concludes with insights on creating added value through M&A transactions and recommendations for both sellers and buyers in achieving successful outcomes.

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Where to find Michael:

https://www.linkedin.com/in/frankelmichael/

Where to find Neeta:

https://www.linkedin.com/in/neetabidwai/

Where to find Good Revenue:

https://goodrevenue.io/goodrevenue

https://www.youtube.com/channel/UCHrhuWbpYnUwrR75H2Ip4yQ

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Highlights:

00:00 Introduction to Michael Frankel and Trajectory Capital

00:23 The Importance of Preparation in M&A

02:37 Active Sourcing Strategies

02:57 Building Relationships for Successful Deals

04:15 Diligence and Integration Planning

05:25 Understanding Value Drivers in M&A

09:29 Challenges in the Current Market Environment

14:14 Strategies for Sellers in a Down Market

15:34 Optimizing Your Business for Sale

21:51 The Role of Business Models and Pricing

23:57 Strategic Discounting for Anchor Clients

24:34 The Misconception of Ignoring Pricing Models

25:52 Understanding Customer Value for Pricing

26:54 The Importance of Customer Insights

28:22 Challenges in Pricing and Market Research

29:03 Valuation and Market Dynamics

35:16 Corporate Strategy and Divestment

43:01 Final Thoughts on M&A and Corporate Development

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Referenced:

• Deloite: https://www2.deloitte.com/us/en.html 

• Trajectory Capital: https://www.linkedin.com/company/trajectory-capital/ 

• LexisNexis: https://www.lexisnexis.com/ 

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