Lunch and Learn talk at MSFT Accelerator - M&A How Do Corporate
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Transcript of Lunch and Learn talk at MSFT Accelerator - M&A How Do Corporate
1. Who am I & why am I here
2. Why do corporates buy companies
3. How do deals happen
4. How to avoid “Oh Shit Moments”
TODAY’S PRESENTATION
ADV SOURCES, SUPPORTS AND SUPERCHARGES UK DIGITAL TECHNOLOGY BUSINESSES FROM ENTRY TO
EXIT
STARTUPS STARTUPS SCALEUPS SCALEBIGS SUCCESSES
PRE-SEED SEED VENTURE GROWTH EXIT
Invest in microfunds,
accelerators and incubators
Co-invest via
accelerators; co-
invest with angels
and VCs
Co-invest with
VCs
at Series A-B
Co-invest with
institutions, VCs
and Corporates at
Series C and
beyond
Support
companies to go
through sale and /
or IPO
AND HERE ARE MORE REASONS
To enter a new market
Industry / vertical /Geography
New Product
to sell to their clients Cheaper than…
THE PROCESS FROM THEIR SIDE 1/2
1. Understanding internal strategy
2. They see a tech/product/company
they want
3. Market research and Long list of
companies
4. Short list of companies and deep
dive
5. Modelling excel [A lot]
6. Referencing of product and team
BEHIND THE
SCENES
THE PROCESS FROM THEIR SIDE 2/2
1. Get to know you meetings [3-10]
2. Starting to work together – POC/Pilot [3-9
months]
3. Signing a contract - Working together [6-18
months]
4. They make good revenue with you and see they
can make shit tons more
5. Internal alignment and discussions -3-6 months
6. A lot more excel modelling !!!!
7. DD and discussions
WORKING
TOGETHER
NEGOTIATIONS POINTS
• Bad cop: Use investors, your board, the team
and God as a foil to avoid putting yourself in a
corner
• Desperation: Never ever share that you are
running out of money or options.
• Every point of contact is a sales
opportunity: Every single email, call, tweet,
text or meetup with anyone at the acquiring
company is a chance for you to make your
case.
• Valuation Game: Safest answer “We are
going to let the market decide so give us
your best offer”. They will push you to go
first but resist unless you are pre revenue ->
Anchor!!
• Don’t lie: Everyone exaggerates but don’t
make shit up
• Transparency cuts both ways: Of course
buyers want to know the truth about your
biz, BUT so do you, so put the buyer on
notice at the start of the process. Tell them
you expect regular and open communication
as a sign that the deal is progressing.
Nothing more stressful then a convo going