#354: M&A Integration: The Good, Bad and Ugly with Kison Patel

In this episode, I dive into the weeds of M&A integration with Kison Patel, an experienced M&A advisor and CEO of M&A Science. Kison shares his extensive knowledge from a decade of experience in the M&A space, having been involved in over 40 deals worth more than $1.5 billion. In 2012, he started Deal Room, a project management software that aims to modernize the M&A process through technology.

Kison highlights the Agile methodology used in M&A, which focuses on rapid execution and iteration to achieve a clear goal. Kison further elaborates on the often-underestimated challenge of integrating a company post-acquisition, not just from a financial perspective, but also considering the people and operations involved.

A common theme you will notice is the necessity of having a clear vision of the end result of the combined operations early in the due diligence and transaction process. Such a proactive approach can ensure that expectations align with reality, resulting in financial returns that make the deal worthwhile.

The importance of this approach is underscored by the statistic that about 80% of acquisitions don't yield returns above their cost of capital or borrowing costs, primarily due to integration challenges. I am super excited because this episode brings to light the potential for more successful outcomes and happier buyers and sellers.

// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast

What You Will Learn

• Gain a comprehensive understanding of M&A integration, its importance, and the steps involved in the process.
• Learn from Kison Patel's decade-long experience in the M&A space, where he has successfully managed over 40 deals amounting to more than $1.5 billion.
• Discover the role of Deal Room, a project management software founded by Patel in 2012, which aims to modernize the M&A process with the help of technology.
• Understand the Agile methodology's pivotal role in M&A processes, focusing on rapid execution, iterative development, and the pursuit of clear objectives.
• Grasp the complexities involved in M&A integration, which goes beyond just financial investment to involve people and operational management.
• Appreciate the need for a clear vision of the combined operations' end state early in the due diligence and transaction process.
• Learn how a proactive approach to M&A integration can result in a higher alignment between expectations and reality, leading to financial returns that make the deal worthwhile.
• Realize the significant challenges in M&A integration, evidenced by the fact that about 80% of acquisitions don't yield returns above their cost of capital or borrowing costs.
• Become familiar with Kison Patel's mission to make the M&A process more efficient and improve overall outcomes.
• Understand that a streamlined and effective M&A process could lead to more successful outcomes and happier buyers and sellers.

// Sign up for the Intentional Growth™ Starter Kit: the kit has intro videos on each of the 5 Intentional Growth™ Principles, the Intentional Growth™ Financial Scorecard along with videos reviewing a case study on how to project out the value of your company, and the entire Intentional Growth™ Podcast Library.

Bio:

With a decade of experience as an M&A advisor, Kison devotes his time to building solutions for more innovative, efficient, and people-driven M&A. Through developing technology, educational content, and industry training, Kison aims to bring better project management to an industry with growing market pressures, transaction values, and competition.

Interview Quotes:

10:15  - “Integration is the activities you need to achieve the value you’re looking to extract out of your acquisition.” - Kison Patel

10:49 - “[Integration is…] buying a company and making it work.” - Ryan Tansom

13:33 - “80 of 90 percent of deals don’t get the return they expected.” - Ryan Tansom

35:30 - “The better you can collect your diligence information, the more you can retain.” - Kison Patel

37:18 - “When you look at a deal and everything is organized, you get excited about it.” - Kison Patel

41:23  - “Once that LOI is signed, it means it’s game time. Culture isn’t going to get in the way.” - Kison Patel

50:10  - “Good leadership is the key to all of this.” - Kison Patel

53:09 - “I think starting off with a small deal is your best bet.” - Kison Patel

Links and Resources:

M&A Science

Intentional Growth™ Vision Board

Intentional Growth™ Online Training

Reach out to me if you have questions about the Intentional Growth™ Training or Fractional CFO services