M&A Science
Partner Before You Buy: The Pre-Acquisition Strategy Corp Dev Teams Skip
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Show notes
Tomer Stavitsky is SVP and Chief Corporate Development Officer at Omnicell (NASDAQ: OMCL)
At a previous employer, Tomer Stavitsky's acquisition started as a partnership. When a rival bidder came in for the whole company, the right of first refusal he'd negotiated is what kept the deal in his hands.
Tomer breaks down the partner-first approach. It's for when the target is too early, the PE owner is in the middle of its hold, or your own team can't take on an integration yet. He covers scoping a 6 to 12 month proof of value and paying for exclusivity. He also covers keeping two to three targets warm and managing the target, its PE owner and your own leadership without sending mixed signals.
The most common mistake is moving too early. Someone with a loud voice sees six months of data from a handful of customers and wants to buy. His fix is to define the milestones that justify the deal before the partnership starts.
Tomer's warning about going back to a year-old target list and finding half of it gone is the problem DealRoom Pipeline was built for. Every target, deal note, contact and follow-up task stays in one place, so the companies you're nurturing don't go cold while you chase the one in front of you. See how it works: click here.