We’ve assembled the buyer and seller from a recent BD-led transaction. And we will unpack the process from the first cup of coffee during a conference break to the last drop of ink on the contract.
Key Takeaways
- Vendasta was a client of Matchraft before it acquired it. Matchraft was looking to exit, and Vendasta was the place it looked first… simply because it was a warm pipeline.
- It also makes it inherently a strategic acquisition, where the diligence has already been done. That speeds up the process, which is always a success factor in any M&A.
- Due diligence only gets so far when it starts cold. It can get you the financials, which of course is critical, but misses several other factors.
- Those factors include culture, knowing the tech is stable, systems integrate well, etc.
- This deeper understanding was obtained from both sides of the table for Vendasta and Matchcraft based on their partnership.
- The company’s goal was that the acquisition wouldn’t cause the loss of any clients or employees. It was able to achieve that goal, and the BD-led orientation can be thanked for that.
- Altogether, these BD-led acquisitions are significantly de-risked when compared to “colder” courtships. And that can be very meaningful given the high stakes of tech M&A.
- To apply a more obvious, but apt, analogy… Marriages are more successful if the couple dated before getting hitched. Yet several acquisitions are still arranged marriages.
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Anatomy of a BD-Led Exit
Josh Scherman, B2B Software Advisors
Sandy Lohr, Vendasta
