9:54 - Preparing for an M&A
16:58 - The right time to sell
27:46 - Drafting a list of potential buyers
43:55 - Disagreeing on the purchase price
1:05:25 - What to do yourself vs delegate
Jonathan Roberts is the director and co-founder of Menalto Advisors, an IT-focused M&A advisory firm headquartered in Silicon Valley and with a strong presence in Europe. He holds a BSc in Accountancy & Management from Miami University and worked as a consultant for Deloitte before starting his own firm, Menalto Advisors, in 2016.
Menalto decided to open up an office in Zurich partially because of its great startup ecosystem (high number of startups funded, large amounts of capital, high number of uni spin offs, but not that many exits) and partially because the city seemed like the ideal place for Jonathan and his wife to raise their first child. Jonathan has been working in M&A for over a decade, and during his episode with us he shared some valuable insights for companies looking for a trade sale exit.
How should you prepare for an M&A?
Startups are by definition resource-constrained operations — they don’t have a lot of time, people or capital — so they should focus their energy on the right opportunities. When engaging with other companies or individuals, make sure the person/company you’re engaging with falls into at least two of the following categories, if not all three: buyers, customers and partner/investors.
When is it the right time to sell? // What type of trade sales are there?
Which KPIs are important to convince buyers? It depends!
You need to know what the buyers in your ecosystem are interested in. If you don’t know, go to tradeshows, conferences, networking events, etc…
What if you disagree on the purchase price?
If you’re looking to undergo an M&A process, make sure to prepare for 6 to 9 months. Within the first 4 to 6 weeks, however, you should already have an idea of where things are headed.
"Buyers today are a lot more diligent about due diligence than they were a decade ago."
If you would like to listen to more conversations on M&A, check out our episode with Heiner Grüter.
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