CEO @ Pavilion | Co-Host of Topline Podcast | Join Top GTM Execs at Pavilion's GTM2024 | October 14-16 2024 | Austin, TX | Get Your Tickets Now
5 reasons to do M&A as the acquirer: 1. They have a product that is already on your roadmap and would take you too long to build 2. They have customers in a segment you haven't penetrated (eg they are in enterprise and you're stuck in SMB or vice versa) 3. They have talent you need in your organization 4. They're just too cheap and you have a strong balance sheet But the 5th was a surprise. And it's specific to a very unique kind of business. 💡 As Bob Moore shared on Topline this week: 5. If you're in a networks-effect business (like account mapping) it makes sense to acquire your direct competitor to ensure your "view of the world" is comprehensive. Imagine trying to use LinkedIn if there was a direct competitor the other half of the world was on. What a nightmare. You'd be endlessly switching between two platforms. That's what it was like to be Crossbeam competing with Reveal and that's why the merger made so much sense. Bob explained this nuance in his first interview since the merger on this week's episode of Topline. It's an incredible and candid conversation discussing how both Crossbeam and Reveal are "COVID companies" that have joined forces to create the world's dominant partnerships platform. (Link to this episode in the comments. Topline is rapidly becoming the very best in B2B market commentary and analysis. This week is no exception.) PS As luck would have it, I'll be at Crossbeam's ELG Con tomorrow to discuss all this and more right before the Pavilion GTM EMEA conference the 2nd part of the week.
Sam, I feel #3 is an overlooked reason to acquire a company. Acquiring a company for its human capital, "acqui-hiring", can be a quicker way to bring on board skilled teams that are already familiar with your market. However. I think it is only good to do this if your company needs talent and is rapidly scaling. A 6th reason could also be to control supply chain. If your secure control over critical parts of your supply chain, then you could reduce costs, improve efficiency, and ensure quality and delivery of essential product components.
Great points on M&A! I've learned a lot the hard way: Acquiring talent is crucial. Integration is key. Tried building internally once. Acquiring a similar product would've saved time and resources. In network-effect businesses, merging with competitors provides a vital comprehensive view. Excited for the insights from Crossbeam and Reveal’s merger. Looking forward to ELG Con! 🌟
Great insights! Another reason for M&A could be to enhance technological capabilities, especially in AI and automation, to stay ahead of the curve. Looking forward to hearing more about Crossbeam and Reveal's innovative steps at ELG Con. Let's connect at the Pavilion GTM EMEA conference to discuss potential synergies in this evolving landscape.
Great insight on strategic acquisitions! Excited for the conference. Alex Belov
That's some insightful info. M&A can really shape the landscape for businesses. Sounds intriguing.
That's a compelling insight into M&A strategy... Sam Jacobs The merger of Crossbeam and Reveal illustrates how these platforms can create a dominant force in the partnerships .
But it's not always that easy right? According to multiple studies, between 50–90% of mergers and acquisitions (M&A) fail to achieve their expected value. Some say the failure rate is closer to 70–90%.
Great insights! M&A can really be a game-changer, especially when it helps you cover all bases in a network-effect business. Sam Jacobs
CEO @ Pavilion | Co-Host of Topline Podcast | Join Top GTM Execs at Pavilion's GTM2024 | October 14-16 2024 | Austin, TX | Get Your Tickets Now
1wApple: https://podcasts.apple.com/us/podcast/e65-bob-moore-on-crossbeams-merger-with-reveal-peter/id1682771619?i=1000661415906 Spotify: https://open.spotify.com/episode/1SjKjeumVJ7nPFOwtMcy5v?si=WTxjQ3LDTsSzET-mYxrjMw