The M&A can be highly inefficient, and inefficiency can lead to failed deals. However, some practitioners have figured out how to increase deal success using new work methods. For example, some practitioners have turned to Linkedin as a different way to approach deal origination. This article will explore Linkedin’s bottoms-up deal origination model, featuring their Vice President and Head of Corporate Development, Benjamin Orthlieb.
"We're not going to buy something cheap if it's not really what we want. We want to be focused on our priorities, and then we'll figure out what accelerates that." - Benjamin Orthlieb
Traditionally, corporate development acts against the strategy after it's been formulated. The corporate development team often comes in later on in the deal to engage with target companies. However, the bottoms-up deal origination model involves corporate development from strategy all the way through to integration. This end-to-end process involved the following steps:
When looking for new potential targets, there are things to consider outside of cultural fit. Benjamin and his team are very open to adding new cultures to their existing business lines. They look for leaders who can bring new solutions and challenges into their organization. According to Benjamin, different personalities have different lenses, which allows expandability in many business aspects.
Whether the deal is a success or not, Benjamin’s team conducts post-mortems on various transaction points. His team frequently assesses if the process works for all cross-functional teams and if they need to update the questionnaires.
Every deal is different, and there will always be new learnings that can be captured in post-mortems. They have a dedicated IMO responsible for capturing lessons learned and updating the cross-functional playbook.