Think Like an Owner M&A Highlights from Ambitious CEOs - EP.253
38 snips
Dec 24, 2024 
Roland Lessard and Tom Klein, Co-CEOs of Morningside, share invaluable M&A strategies focused on value creation and leveraging debt. Jeff Homer, CEO of Ensemble, discusses successful roll-up strategies and brand integration. Henry Schuck, founder of ZoomInfo, offers expert insights on M&A in the software industry, emphasizing team transition and integration. Together, they explore the complexities of M&A success, integration strategies, and the practical aspects of structuring deals and managing client relationships.
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M&A Failure and Vision
- Most M&A transactions fail because of poor integration, often due to a lack of a clear vision.
- Define a concrete vision of the combined company 12 months out, both qualitatively and quantitatively.
Prioritize Horizontal Acquisitions
- Focus on horizontal acquisitions first. These allow better value extraction planning since you understand the business well.
- Align quantitative outcomes with the drivers, like improved client applications or API integrations.
Roll-Up Success Factors
- Successful roll-up strategies require multiple arbitrage, where scaled businesses trade at premium multiples.
- Industries like capital-light youth enrichment offer better multiple arbitrage than heavy industrial sectors.