Navigating Mergers and Acquisitions: Insights from Jan Robertson of Sival Advisors
In this episode of Scale by Numbers, we delve into the world of mergers and acquisitions with Jan Robertson, the managing partner and co-founder of Sival Advisors, a boutique M&A investment banking firm based in Silicon Valley. With extensive experience in both sell-side and buy-side transactions, Jan shares her expertise on what makes a successful M&A process, the impact of current trends like AI, and offers advice for CEOs considering selling their businesses.
Key Takeaways:
- The key elements of a successful sell-side M&A process: preparation, process, and persistence.
- The importance of thorough financial preparation, including 3-5 years of historical data, forecasts, and adjusted EBITDA.
- How to identify the right strategic buyers, including quasi-strategics backed by private equity.
- The importance of contacting senior level decision makers at potential buying companies (CEO, COO, President, CFO, or Senior VP of strategy or corporate development).
- Common pitfalls that can derail M&A deals, such as lawsuits, poor financial performance, or key personnel changes.
- The dynamics of buy-side M&A, particularly when working with overseas companies looking to acquire in the US.
- Strategies for negotiation, including leveraging competition and setting short exclusivity windows on the sell side.
- Why lowballing is a bad strategy for buyers.
- When CEOs should start engaging with M&A bankers: it’s never too early to build relationships and get educated on the market.
- The importance of a strong financial team for a company looking to sell, and other professionals that may be needed at the right time.
- How AI is currently being used in M&A, primarily for research and summarizing financial statements, with potential for greater impact in the future.
- The importance of people in the M&A process, emphasizing that it’s still ultimately a people business.
This episode provides valuable insights for business owners, investors, and anyone interested in the complexities of mergers and acquisitions.