Think Like an Owner

Roland Lessard - The M&A Value Creation Playbook - Ep.209

Feb 6, 2024

Roland Lessard, former Co-CEO of Morningside, talks about M&A value creation. They discuss the 'why' of M&A, avoiding value destruction, assembling and leading an integration team, planning for integration, the role of debt, and common pitfalls to avoid.

01:15:19

Episode guests

Roland Lessard

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Having a clear understanding of the why behind an M&A deal and proper planning is crucial for success.

Starting with smaller, horizontal deals that complement the existing business can lead to smoother integration efforts.

Effective communication, change management, and consistency in messaging are vital for successful integration.

Deep dives

Planning for Successful M&A

When engaging in M&A, it is crucial to have a clear understanding of the why behind the deal. Many M&A deals fail because there is a lack of focus and proper planning. To avoid this, it is important to create a deal book that outlines the vision for the end state and the value extraction. The deal book should include components such as org charts, company snapshots, headcount tables, and a financial summary. Additionally, the integration team plays a key role in the success of the deal. The team should consist of cross-functional representatives from both the acquiring company and the target company. By setting a time frame of 12 months and focusing on tasks that can be accomplished within that period, the integration process can be more efficient and effective.

Introduction

4min

Excitement for an upcoming podcast episode and discussion on M&A strategy

2min

Understanding M&A Strategies and their Categorizations

10min

Building a Solid Foundation: The Importance of Core Debt Strategy and Patience in M&A

25min

Creating a Comprehensive Deal Book

23min

The Role of Debt and Building a Flywheel in M&A

4min

Common Do's, Don'ts, and Key Takeaways for M&A Value Creation

4min

The Value of Employee Ideas and Active Listening in M&A Integration

2min

My guest on this episode is Roland Lessard, former Co-CEO of Morningside with his partner Tom Klein, a language translation services business that served over 4,000 clients in 55 countries. A core piece of their thesis revolved around M&A, and Tom and Roland through that experience acquired deep domain expertise in creating value through a methodological M&A and, more importantly, integration process.

This episode is all about M&A and corporate development, both for companies doing occasional M&A and those with more programmatic strategies, which is where Roland is spending most of his town now as an advisor to CEOs.

Today Roland and I talk about the “why” of M&A, how M&A most often destroys value and how to avoid this, getting the team right prior to beginning M&A, assembling and leading an integration team, planning for integration and pitfalls to avoid, and the role of debt.

Listen weekly and follow the show on Apple Podcasts, Spotify, Google Podcasts, Stitcher, Breaker, and TuneIn.

Learn more about Alex and Think Like an Owner at https://tlaopodcast.com/

I want to tell you about the audience survey we are currently running. These surveys help us create the best content for listeners and better understand your needs and interests. Thank you in advance for sharing your feedback, we greatly appreciate it.

Take the survey here: https://bit.ly/3QLBB1N

Links:

Roland on LinkedIn

Morningside

Topics:

(00:00:00) - Intro

(00:04:34) - Catching up

(00:06:45) - Categorizing M&A

(00:09:45) - Why should someone consider pursuing M&A?

(00:16:22) - Horizontal deals

(00:21:48) - Building Integration Teams

(00:33:44) - Having a 12-month outlook, maximum

(00:41:03) - Creating a dealbook

(00:47:31) - Benchmarks for processes and projects

(00:55:07) - Categories of integrations

(00:59:56) - Metrics to track in order to make sure you’re staying on goal

(01:04:23) - The role of debt

(01:08:31) - Key Takeaways

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.

Think Like an Owner

Roland Lessard - The M&A Value Creation Playbook - Ep.209

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Planning for Successful M&A

Choosing the Right Acquisition Targets

The Importance of Accountability and Time Management

Communicating and Managing Change

Ensuring Consistent Messaging and Avoiding Variability in Communication

Different Categories of Integrations and Approaches

Remember Everything You Learn from Podcasts