How To Successfully Execute Deals With A Small Team
Understanding that not everyone can afford to have big M&A teams, I asked Jason, who only has one dedicated M&A person, about how to successfully execute transactions with a small team. Here are some of the highlights:
"Culture and leadership development is the most significant piece of creating a competitive advantage. When your culture is great, more people stay over the long term, and you will end up getting more momentum in the business."- Jason Lippert
Jason never had any formal training regarding acquisitions, so building a team never really occurred to him. They never felt like they needed a bigger team because they only look at four industries. Most of their deals are strategic, so their part-time M&A practitioners will have an idea of how to execute the deal.
The secret to their deal success is acquiring good leadership. They have discovered through experience that deals are a lot easier to do when they acquire a great leadership team. They even made it a requirement that the acquired company have a solid leadership team before considering doing a deal.
Culture and Leadership Development
Because leadership and culture are extremely important to Jason and their M&A strategy, they spend a lot of time ensuring that they are consistent across their organization. They have 24 individuals dedicated to culture, and leadership development focused on newly acquired companies. This is one of the ways they create value on their acquisitions.
Since their organization is very much focused on leadership, one of the things they really look for is leadership strength. When they see a toxic leadership or culture, they tend to walk away from the deal. Since they have a small M&A team, they won't have the resources and time to enforce massive changes in a company.