Best Strategies to Build a Corporate Development Team in the Lower Middle Market

Whether you're looking to expand your business, acquire new assets, or simply stay competitive, having a dedicated team of professionals can make all the difference. This is especially true in the lower middle market, where businesses may face unique challenges and opportunities.

Building a corporate development team in this market requires a combination of strategic thinking, industry expertise, and effective communication skills.

So, what are the best strategies for building a corporate development team in the lower middle market?

Let's take a closer look.

Understand the Market

The lower middle market can be a complex and diverse landscape, with a wide range of businesses operating in various industries. Before building a corporate development team, it’s important to understand the market and the key players in it.

This means researching industry trends, analyzing competitors, and gathering data on potential acquisition targets. By gaining a deep understanding of the market, you can identify opportunities for growth and develop a clear strategy for your corporate development team.

Hire the Right People

Building a strong corporate development team requires hiring the right people. This means finding individuals with the right mix of skills, experience, and personality traits. Look for candidates with a strong financial background, excellent analytical skills, and a deep understanding of the industry.

It’s also important to find people who are collaborative, communicative, and able to work well in a team environment. When building your team, focus on diversity, both in terms personal background, culture and perspectives.

Develop a Clear Process

One of the keys to a successful corporate development team is having a clear and well-defined process for evaluating potential acquisitions. This process should include a series of steps, from identifying potential targets to performing due diligence to negotiating a deal.

By having a clear process in place, you can ensure that everyone on the team is aligned and working towards the same goals. It’s also important to have clear guidelines for how decisions will be made and who will have final say.

Focus on the Culture

Creating the right culture is essential to building a successful corporate development team. A strong culture built on shared values, trust, and respect can help you attract and retain top talent.

Leverage your network

Finally, don't underestimate the power of your network. Reach out to industry contacts, peers, and professional associations to find potential candidates. You may also want to consider working with a recruiter or business brokers who specializes in corporate development. They can help you identify top talent and streamline the hiring process.

Building the future team of who you want to run your business is a critical time in the growth of your business. Embrace this process with clear intention and effective leadership. By implement these strategies, you’ll be well on your way to building the most cohesive and effective team to reach your business’ potential.

M&A In 2023: 4 Actions To Win The Race For Returns

Throughout most of the past two years, acquisitive companies turbo-charged their due diligence processes as mergers and acquisitions (M&A) values topped the record highs set in 2015 ($3.96 trillion) and 2007 ($3.67 trillion), per data from White & Case. After the pace of dealmaking decreased in late 2022, the need for speed has shifted to the time it takes a deal to achieve its projected returns.

While investment bankers and other M&A specialists disagree on their projections of the M&A landscape in 2023, virtually all boards of directors agree on one thing: They want to see results sooner rather than later.

Meeting this expectation falls squarely on the CFO. As the primary internal sponsors of M&A transactions, finance leaders must ensure due diligence efforts are comprehensive enough to satisfy the shortening timelines for returns on acquisition that more boards and investors demand. This means CFOs will need to exercise and emphasize different M&A muscles in 2023 than they have in the past 24 months.

Will the global M&A market take off again in 2023?

Last year is being termed a ‘tale of two halves’ for M&A activity. While global M&A saw record levels of dealmaking in the first half of the year, the second half experienced a considerable slowdown as the market was impacted by the war in Ukraine, inflationary pressures, rising interest rates and continued political uncertainty. 

The question for 2023 is how the M&A market responds to the ‘perma-crisis’ state we are now living through with geopolitical tensions raising political, economic and energy security issues. 

Inflationary pressures are challenging asset valuations in deals, and in some cases testing business viability. The rise in interest rates around the world, and associated increased cost (and lesser availability) of debt, may make some deals more difficult.

However, despite these challenging conditions, M&A markets are far from closed. Among the drivers of ongoing deal activity are carve-out transactions, as large companies look to reshape their portfolios in order to shore up balance sheets and deliver value to shareholders, and transformational deals as they seek to drive change in their business towards digitalisation, energy transition or rebalancing of supply chains. 

Top Tips to Grow your Middle Market Business Quickly

So you’ve established your business within the lower middle market, but now you’re looking to grow. And quickly.

Growing your middle market business quickly can be both challenging and rewarding. The middle market is a sweet spot between small businesses and large corporations, where you have more resources and flexibility than the former, but also more agility and room for growth than the latter.

To make the most of this opportunity, you need to be strategic, creative, and focused on your goals. In this article, we'll share some top tips to help you grow your middle market business with speed so you don’t waste any time reaching your business’ full potential.

Invest in Corporate Development

Corporate development is an essential part of growing a middle market business. It involves identifying opportunities for growth, evaluating strategic partnerships and acquisitions, and assessing the risk and potential impact of each opportunity. Corporate development can help you expand your market share, diversify your product offerings, and increase your overall revenue.

Corporate development teams typically work closely with senior management, board members, and other stakeholders to evaluate potential mergers and acquisitions, joint ventures, partnerships, divestitures, and other strategic transactions that can help the company expand its operations, enter new markets, diversify its portfolio, or achieve other strategic objectives.

Define your niche and value proposition

To stand out in a crowded market, you need to have a clear idea of what makes your business unique and valuable to your customers. This starts with defining your niche, or the specific segment of the market that you're targeting, and then crafting a compelling value proposition that explains why your products or services are better than your competitors'. Make sure to research your target customers' needs and preferences, and tailor your message accordingly.

Focus on customer acquisition and retention

Growing a middle market business quickly requires a steady stream of new customers, as well as a high retention rate of existing ones. To achieve this, you need to invest in marketing and sales strategies that resonate with your target customers, such as social media advertising, email marketing, and referral programs. You also need to provide excellent customer service and build strong relationships with your clients, so they keep coming back and referring others.

Leverage technology and innovation

Technology and innovation can be powerful enablers of growth for middle market businesses. By adopting new tools, platforms, and processes, you can streamline your operations, reduce costs, and increase productivity. For instance, you can use automation software to handle repetitive tasks, cloud-based solutions to store and share data, and analytics tools to track your performance and identify new opportunities.

Pursue strategic partnerships and collaborations

Finally, growing a middle market business quickly often involves forging strategic partnerships and collaborations with other businesses, organizations, and stakeholders. Look for opportunities to team up with complementary players in your industry, such as suppliers, distributors, or service providers. Also, consider joining industry associations, attending conferences, and participating in networking events to expand your reach and influence.

Build a strong team and culture

Growing a middle market business quickly also requires a strong team that shares your vision, values, and work ethic. Hire the best talent you can afford, and provide them with the training, support, and incentives they need to excel. Also, create a positive and inclusive company culture that fosters innovation, collaboration, and personal growth. Your employees are your most valuable asset, so invest in them wisely.

Growing a middle market business quickly is a multifaceted challenge that requires a combination of corporate development, strategic thinking, customer focus, technology adoption, talent management, and partnership building.

Follow the strategies outlined above and you’ll be well on your way to creating a thriving, sustainable, and impactful business that serves your customers, employees, and stakeholders.

Best Ways to Build a Corporate Development Team in the Lower Middle Market

In today's fast-paced business environment, the importance of corporate development cannot be overstated in the lower middle market.

The lower middle market is defined as companies that have a revenue range of $5 million to $100 million. These companies often have unique challenges in comparison to larger companies when it comes to corporate development.

This article outlines best practices you need to follow to build a successful corporate development team in the lower middle market.

Define your team's role and responsibilities

The first step in building a corporate development team is to define their role and responsibilities. This includes identifying the key objectives and goals of the team, as well as the specific functions they will be responsible for. The team should have a clear understanding of their role in the organization and how they contribute to the overall success of the company.

Succession Planning

One of the primary challenges for lower middle market companies is effective succession planning. It's essential to have a plan in place to ensure a smooth transition when a founder or key executive leaves the company. Having a strong corporate development team can help with this planning, ensuring the company's sustainability in the long run.

Hire the right people

The success of any corporate development team is dependent on the skills and expertise of its team members. When building your team, it's important to identify individuals who possess the necessary skills and experience. These skills may include strategic thinking, financial analysis, business development, and negotiation skills. Additionally, the team should be made up of individuals who have a strong understanding of the industry and market dynamics.

Leverage your existing network

Your existing network can also be a valuable source of potential candidates. Reach out to your peers in the industry and ask for recommendations. You may also want to post job openings on LinkedIn or other professional networks.

Hire a business broker

Business brokers can help you find potential candidates for your corporate development team. They have extensive networks and can connect you with individuals who have experience in M&A, business valuation, due diligence, and other related fields.

Invest in training and development

To ensure your corporate development team is always at the top of their game, it's important to invest in their training and development. This may include providing opportunities for professional development, such as attending industry conferences or pursuing advanced degrees. Additionally, offering ongoing training and mentoring programs can help team members stay up-to-date on industry trends and best practices.

Foster a collaborative culture

To build a strong corporate development team, it's important to foster a collaborative culture. This means encouraging team members to work together, share ideas and insights, and collaborate on projects. This not only helps to build stronger relationships within the team but also promotes innovation and creativity.

Measure success

Finally, to ensure your corporate development team is successful, it's important to measure their performance. This means tracking key metrics such as deal flow, financial performance, and customer satisfaction. By tracking these metrics, you can identify areas where the team is excelling and where there is room for improvement.

Building a strong and effective corporate development team in the lower middle market requires a clear understanding of their role and responsibilities, hiring the right people, fostering a collaborative culture, investing in training and development, and measuring success. By following these best practices, you can build a team that is capable of driving growth and success for your organization.

U.S. oil & gas M&A hit 17-year low; big firms dominate deals-report

U.S. oil and gas deal-making declined by 13% last year to $58 billion compared to 2021, according to energy technology firm Enverus, with the volume of activity hitting its lowest level since 2005 as buyers became more choosy about asset purchases.

The decline comes as large companies with strong balance sheets are targeting the best properties in deals valued upwards of a billion dollars, while smaller firms with discounted equity have been unable to find financially attractive assets, Enverus wrote in a note on Tuesday.

Oil companies are also grappling with less productive wells, with some viewing asset purchases as a way to keep oil and gas flowing. Larger companies with better inventories tend to have a premium built into their stock, giving them more buying power, Enverus wrote.

“It’s a market where the rich get richer,” said Andrew Dittmar, a director at Enverus who focuses on mergers and acquisitions.

Top Tips for Acquiring a Business in the Lower Middle Market in 2023

Are you thinking of acquiring a business in the lower middle market?

If so, you are not alone.

This is a popular strategy for corporate development, and it can be a lucrative way to grow your company. However, there are some important considerations to keep in mind before you take the plunge.

In this article, we’ll address our most current tips for acquiring a business in the lower middle market this year and offer insights on how to navigate the process.

Tip #1: Define your acquisition strategy

The first step in any successful acquisition is to define your acquisition strategy. This means identifying your ideal buyer profile and your desired acquisition criteria within the lower middle market. You'll need to decide what type of business you want to acquire, what size business you're looking for, and what industry or niche you want to target. The more specific you can be, the better.

Once you have a clear strategy in place, you'll be able to focus your search and avoid wasting time on opportunities that don't meet your criteria.

Tip #2: Plan ahead for succession

One key consideration when acquiring a business is to plan ahead for succession. Make sure that you have a solid plan in place for who will lead the business after the acquisition is complete. This can help to ensure continuity and avoid any disruptions to the business.

Tip #3: Work with a reputable business broker

Working with a reputable business broker can be an invaluable resource when acquiring a business. A good broker can help you identify potential acquisition targets, negotiate the terms of the deal, and provide guidance on valuation and financing. They can also help you navigate the complexities of the due diligence process and ensure that all legal and financial aspects of the deal are in order.

Tip #4: Conduct thorough due diligence

Speaking of due diligence, this is one of the most important steps in the acquisition process. It's critical to conduct a thorough review of the target business, including its financials, operations, and legal history. Be sure to hire experts in each of these areas to ensure that you have a complete picture of the business and its potential risks and opportunities.

Tip #4: Have a clear exit plan

It's important to have a clear exit plan in place before you acquire a business. This can help you to make decisions about how to integrate the business into your existing operations and how to manage any potential risks or challenges. It can also help you to plan for the long-term success of the business.

Tip #5: Be prepared to negotiate

Acquiring a business in the lower middle market often involves negotiation, and it's important to be prepared to make concessions in order to close a deal. This may mean compromising on price, adjusting the terms of the deal, or making concessions on other issues. Keep in mind that negotiation is a give-and-take process, and both parties need to feel like they're getting a fair deal in order for the transaction to be successful.

Acquiring a business in the lower middle market can be a great way to grow your company and is undoubtedly a challenging but rewarding experience. Bear the above tips in mind and approach the process with care and attention to detail.

By having a clear acquisition strategy, planning ahead for succession, working with a reputable business broker, conducting thorough due diligence, and having a clear exit plan, you’ll have set yourself up for the most successful acquisition possible in the lower middle market.

Best Ways to Source Middle Market Deal Flow in Corporate Development

As a corporate development professional, finding high-quality deal flow is critical to the success of your organization. However, sourcing middle-market M&A deals can be challenging, especially when you’re competing against other buyers.

In this article, we’ll explore some of the best ways to source middle-market deal flow in corporate development, including leveraging your network, creating an effective succession plan, working with intermediaries, and conducting proactive outreach.

Leverage Your Network

One of the most effective ways to source middle-market M&A deal flow is by leveraging your network. This means building and maintaining relationships with people who can provide you with leads on potential deals. This could include business brokers, investment bankers, private equity firms, commercial lenders, attorneys, accountants, and other professionals in the industry.

To build a strong network, attend industry conferences, join relevant professional associations, and participate in online forums and groups. Don’t forget to stay in touch with your existing contacts by sending them updates on your company’s activities, sharing industry news, and inviting them to events.

Succession Planning

One of the most effective ways to source middle market deal flow is through effective succession planning. Succession planning involves identifying potential acquisition targets by analyzing their ownership structure, management team, and potential for growth. Companies that are family-owned or have aging leadership teams are great targets for acquisition.

Work with Intermediaries

Intermediaries such as investment banks, business brokers, and M&A advisors can be valuable partners in sourcing middle-market deals. These professionals have access to a wide network of potential sellers and can help you identify and evaluate acquisition opportunities.

When working with intermediaries, it’s important to establish clear expectations and communication channels. Make sure you provide them with a clear understanding of your acquisition criteria and preferred target markets. Be prepared to ask the right questions and conduct thorough due diligence to ensure the deal is a good fit for your organization.

Conduct Proactive Outreach

Another way to source middle-market deal flow is by conducting proactive outreach. This involves identifying potential targets and reaching out to them directly. This can be done through various channels, including cold calling, email, or social media.

To be successful in this approach, it’s important to have a well-defined target market and acquisition criteria. You should also have a compelling value proposition and be able to clearly articulate why your organization is the best fit for the potential seller. Finally, be persistent and follow up regularly to maintain momentum and build a relationship with the seller.

Sourcing middle-market deal flow is critical to the success of any corporate development strategy. While it can be challenging, leveraging your network, working with intermediaries, and conducting proactive outreach can help you identify and evaluate potential acquisition opportunities.

By developing a robust deal sourcing strategy, you’ll be well-positioned to identify and execute on the right deals that will drive growth and success for your organization.

UPSTREAM M&A FALLS 13% YEAR-OVER-YEAR IN 2022 TO $58B

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, is releasing its summary of 4Q22 upstream merger and acquisition (M&A) activity. For 2022, U.S. upstream M&A saw $58 billion transacted in 160 deals, including $13 billion from 26 deals in the fourth quarter.

While deal values are down just about 20% from pre-pandemic averages, the volume of deals has collapsed to a nearly two-decade low as activity has been driven by large companies targeting the highest quality assets in billion-dollar-plus deals.

“Large-cap public companies like Devon Energy, Diamondback Energy, and Marathon Oil dominated deal activity in the back half of 2022,” said Andrew Dittmar, director at Enverus Intelligence Research.

“These buyers have the balance sheet strength and favorable stock valuations to take advantage of large, high-quality offerings from private sellers. Critically, they can strike deals that both accretive to current cash flow and extend their runway of drilling locations. For smaller companies, which are still having their equity value discounted, it is challenging to thread the needle of buying assets at accretive multiples and being able to pay for inventory.”

Why a declining economy could spur increased M&A activity in the mobile gaming industry

With a recession in the offing, the coming year is shaping up to be a difficult one for business across the gaming industry, including the mobile gaming sector. But while the recession brings challenges for mobile game developers, that doesn’t mean M&A activity in the space is going to slow down in 2023.

M&A has been a consistent source of growth for mobile gaming companies in recent years. Much of Zynga’s growth between 2016 and 2020 was a result of its ample acquisitions of other mobile game studios during the period, according to Chris Petrovic, who led M&A at the company at the time. In 2023, the M&A action has continued: Just last week, Playtika announced a nearly $738 million deal to acquire Rovio, the developer of popular mobile games such as “Angry Birds.”

“In 2023, I don’t think the appetite for acquisition will change much,” said Zynga Chief Product Officer Scott Koenigsberg. “I think the targets will probably be younger companies in their evolution, and so we’re going to have to do more analysis to try to figure out what their long-term forecasts would be.”

The aforementioned smaller mobile gaming companies are likely to feel the squeeze of a recession earlier than the Zyngas of the world. Many rely on brands’ advertising dollars to stay afloat, and as those dry up, they are likely to turn toward acquisitions as a potential emergency exit.

How to Get a Loan to Buy a Business: Venture Capital Deal Origination

Acquiring a loan to buy a business can seem like a daunting task, but with the right strategy and preparation, it can be a smooth and straightforward process.

Whether you're a seasoned entrepreneur or a first-time buyer, here are some tips to help you secure the financing you need to take your business to the next level.

1. Assess your financial situation: Before you start the loan application process, it's important to have a clear understanding of your financial situation.

   This includes your credit score, income, debts, and assets. You should also have a clear understanding of the business you're buying, including its financials, market position, and growth prospects.

2. Choose the right lender: Not all lenders are created equal. Some lenders specialize in small business loans, while others focus on larger deals.

   You should choose a lender that is familiar with the industry you're in and understands the specific needs of your business. Consider the interest rate, repayment terms, and any additional fees and charges when choosing a lender.

3. Have a solid business plan: A well-prepared business plan is essential when applying for a loan to buy a business.

   Your plan should outline the goals and objectives of the business, the target market, and the marketing strategy. It should also include detailed financial projections, including cash flow, revenue, and profitability.

4. Provide collateral: Collateral is a form of security that a lender can seize if you're unable to repay the loan.

   This can be anything from property, investments, or personal assets. Providing collateral can help increase the chances of your loan being approved, and may also result in lower interest rates and better repayment terms.

5. Get help from a professional: If you're unsure about the loan application process or need assistance with your business plan, consider working with an M&A advisor or a business broker.

   An experienced business broker, accountant, or financial M&A advisor can help guide you through the succession planning process and ensure that you have the best chance of securing the financing you need.

Acquiring a loan to buy a business can be a complex process, but with careful planning, preparation, and professional support, you can increase your chances of success.

With the right financing, you can grow your business and achieve your goals; don't be afraid to take the next step and secure the funding you need to succeed.

Survey: Middle-market Business Leaders Positive on M&A Market in 2023

The 2023 M&A Outlook from Citizens M&A Advisory in Detroit revealed both upbeat expectations for company performance and high desire for growth in a low-growth world in the coming year.

The annual survey of 400 leaders at U.S. middle-market companies and private equity (PE) firms also indicated that buyer and seller sentiment about mergers and acquisitions (M&A) will return to pre-pandemic norms as the macroeconomic backdrop stabilizes.

“Companies exited the pandemic era with a newfound resilience and, in many cases, better finances and more experienced management,” says Jason Wallace, head of Citizens M&A Advisory. “When the macro conditions normalize, we see a pipeline of buyers and sellers eager to return to the market.”

How to Buy a Business: Process and Factors to Consider

Buying an existing business is a great option for those who are looking to become entrepreneurs and want to start a new business with a strong foundation. It can be a fantastic way to quickly take advantage of a proven business model and minimize the risk associated with starting a new business from scratch.

However, buying an existing business is a complex and multi-step process, and it is essential to understand the various factors that come into play. In this blog, we will discuss some of the key factors to keep in mind when buying an existing business.

Succession Planning:

One of the first things to consider when buying an existing business is succession planning. This refers to the process of preparing for the eventual transfer of ownership and management of the business from one generation to the next. It is crucial to consider whether the current owner of the business is planning to retire soon, as this could have a significant impact on the future of the business.

Business Broker:

A business broker can be a valuable resource when buying an existing business. A business broker is a professional who specializes in buying and selling businesses. They can help you find the right business to buy, negotiate the purchase price, and handle the legal and financial aspects of the transaction.

Corporate Development:

Corporate development is another important factor to consider when buying an existing business. Corporate development refers to the process of making strategic decisions that will improve the value and performance of the business. This could include expanding the business, entering new markets, or acquiring other businesses.

Exit Planning:

Exit planning refers to the process of preparing for the eventual sale of a business. It is important to consider exit planning when buying an existing business, as this will help you understand the future prospects for the business and the likely return on investment.

How to Buy a Business:

To buy an existing business, you need to follow these steps:

1. Evaluate the Market: Before you even begin your search, it's important to determine if the market you're interested in is a good fit. Research the industry and target market to understand what you're getting into.

2. Perform Due Diligence: Before finalizing the purchase, it's crucial to perform due diligence. This includes reviewing the company's financial statements, contracts, and legal agreements. You should also assess the company's operations, management, and workforce.

3. Consider the Company's Financials: A thorough examination of the company's financials is crucial in determining its overall health. You need to assess the company's revenue, expenses, and cash flow. You should also take a look at the company's tax returns and balance sheet.

4. Assess the Competition: Understanding the competition will give you a clear picture of the market and the company's position within it. This will help you determine whether the company is a good investment or not.

5. Negotiate the Price: Once you have evaluated the company and its market, it's time to negotiate the price. You should work with a business broker or attorney to ensure that the terms of the purchase agreement are fair and reasonable.

6. Develop a Business Plan: Once you have finalized the purchase, it's time to develop a business plan. This will help you outline your vision and strategy for the company and ensure that it stays on track.

In conclusion, buying an existing business is a great way to become an entrepreneur and take advantage of a proven business model.

However, it is important to consider key factors such as succession planning, business brokers, corporate development, exit planning, and the steps involved in buying a business.

With careful consideration and preparation, buying an existing business can be a great way to achieve your entrepreneurial dreams.

Middle-market M&A players expect conditions to stabilize in 2023

More than 80% of U.S. middle-market companies and private equity firms agree that company valuations will be stable or higher in 2023 after a year of big price adjustments, according to an annual survey by Citizens Financial Group Inc.

Most middle-market companies among the 400 respondents to the Citizens’ 2023 M&A Outlook expect better conditions in 2023 after macroeconomic uncertainty, inflation and steep losses in equities derailed deals in the past year.

Sixty-two percent cited growth as their motivation for M&A deals, up from 48% in 2022.

“When the macro conditions normalize, we see a pipeline of buyers and sellers eager to return to the market,” said Jason Wallace, head of M&A advisory at Citizens Financial Group CFG, +0.51%, in a prepared statement.

Some of that optimism is reflected in shares of bank stocks in 2023, which have started out in positive territory thus far.

Playing to your Strengths: Strategic Deal Sourcing for Multi Family Office

Playing to your strengths is a vital aspect of any successful M&A strategy, and the same holds true for multi family office deal sourcing. Family offices are often tasked with finding and executing high-value investment opportunities that align with their long-term financial goals. In order to do this effectively, it is essential to focus on your strengths and play to them when sourcing deals and succession planning.

One key strength of many multi family offices is their extensive network. Family offices are often closely connected to high net worth individuals, business leaders and other powerful figures in the investment world. This extensive network can be a valuable asset when sourcing deals, as it provides access to a wide range of investment opportunities that may not be available to other investors.

Another strength of multi family offices is their ability to take a long-term perspective on investments. Family offices are often focused on building wealth over several generations, which allows them to take a more patient approach to investments than other types of exit planning. This can be a significant advantage when sourcing deals, as it enables multi family offices to wait for the right opportunity to present itself, rather than rushing into investments and deal origination that may not align with their long-term goals.

Another important strength of family offices is their in-depth knowledge of their investment priorities. Family offices are often closely tied to the interests and goals of their families, which gives them a unique perspective on the types of investments that are most important to their families. This knowledge can be leveraged when sourcing deals, as it allows multi family offices to focus on investments that are most likely to deliver value to their families over the long term.

When it comes to deal sourcing for family offices in M&A, playing to your strengths is essential. Whether it is leveraging your extensive network, taking a long-term perspective on investments, or focusing on your investment priorities, focusing on your strengths can help you to find and execute the best investment opportunities for your family office. By doing so, you can ensure that your family office remains at the forefront of investment success, while also building wealth and security for future generations.

How to Organize your Corporate Development Deal Sourcing

Corporate development deal sourcing is a critical function for companies looking to grow through mergers, acquisitions, and partnerships. It involves identifying, evaluating, and securing strategic deals that will help the company achieve its growth goals.

However, with so many potential opportunities, it can be challenging to keep track of them all and ensure that you are making the best choices for your company. In this blog, we will explore how to organize your corporate development deal sourcing process to increase your chances of success.

1. Establish a Deal Sourcing Team

The first step in organizing your corporate development deal sourcing process is to establish a team responsible for the task. This team should consist of individuals from different departments, including corporate development, finance, legal, and operations. This will ensure that all perspectives are taken into account and that all the relevant information is captured.

2. Create a Deal Sourcing Pipeline

Once you have your team in place, the next step is to create a deal sourcing pipeline. This pipeline should outline the various stages of the deal sourcing process, from initial identification to closing. This will help you keep track of the status of each deal and ensure that everyone is aware of their responsibilities.

3. Use a Deal Sourcing Tracking System

To make the deal sourcing process as efficient as possible, it is essential to have a system in place to track and manage all the deals. A deal sourcing tracking system can help you manage your pipeline, keep track of the status of each deal, and provide a central repository for all the information related to each deal.

4. Define Your Deal Criteria

To ensure that you are sourcing the right deals, it is crucial to define your deal criteria. This should include factors such as geographic location, target industry, size of the company, and any other relevant criteria. This will help you focus your efforts on deals that are the best fit for your company.

5. Conduct Regular Review Meetings

It is also important to have regular review meetings to assess the progress of the deal sourcing process. During these meetings, the team should review the pipeline, discuss any new opportunities, and make any necessary updates to the deal criteria. This will help ensure that the process remains on track and that everyone is aligned on the company's goals.

In conclusion, organizing your corporate development deal sourcing process is essential to ensure that you are sourcing the right deals and making the best decisions for your company. By establishing a team, creating a pipeline, using a tracking system, defining your deal criteria, and conducting regular review meetings, you can increase your chances of success and drive growth for your company.

A timeline for startup M&A processes: Key steps and factors to consider

M&A can be a great outcome for all parties, especially for startup founders and their team. Founders may have conflicting emotions when thinking about selling their company. That is perfectly understandable; in the beginning, many founders hope to build an enduring company.

Not all companies are best positioned to go it alone, and that’s okay.

However, it’s important to acknowledge that there are plenty of good reasons to sell: You can join a “larger rocketship” where 1+1=3; there could be a strong match with an acquirer; burn-out in the startup team; the team or investor wants liquidity; and so on. Further, myriad long-term, standalone companies have been founded by founders who sold or exited their prior companies.

During downturns, think of M&A as a game of musical chairs. The companies that test the market earlier in the cycle (before things have gotten particularly bleak) tend to see better outcomes.

In markets where incumbents are playing catch-up, there is a window when a few companies will get bought. By the time those deals settle, the rest will likely decide to build instead of buying.

How to Optimize your Brand in the M&A Industry

The M&A industry is one of the most lucrative in the world. It's also a highly competitive field, and it can be difficult to break through the noise and establish a unique brand that can stand out from the crowd.

Fortunately, there are some simple steps you can take to optimize your brand for success in this space.

1. Define your brand identity: Develop a clear understanding of your brand values, personality, and differentiators.

   Create a clear vision for your company as a whole, and then break that vision down into smaller parts so that every person on your team knows exactly what they're working toward. This will help ensure that everyone's efforts are aligned with the overall goals of the organization, rather than simply working toward their own personal goals.

2. Evaluate your brand strength: Assess your brand’s reputation, recognition, and market position in the industry.

3. Align brand with strategic goals: Ensure your brand strategy aligns with your overall M&A objectives, such as expanding into new markets or acquiring complementary capabilities.

4. Manage brand integration: Develop a plan for how to integrate the brands of the two companies following the M&A transaction, while preserving the distinctiveness of each.

5. Communicate effectively: Communicate the benefits of the M&A transaction to customers, employees, and other stakeholders, and clearly articulate the new brand identity.

   You should also make sure that all employees understand what makes your brand unique, and how they can contribute to its success. Encourage them to share their ideas with each other and communicate openly about what works well for them and what doesn't work so well—this way, you can all work together toward an even better future for all involved parties.

6. Monitor and measure success: Regularly monitor and measure the impact of the M&A on your brand, and make adjustments as necessary to ensure its continued success.

Finally, it's important not just for you but also for potential partners if possible. If there are other companies in an industry that could benefit from merging with yours (e.g., if both have similar customer bases).

In these cases, it could be a good option for both parties involved in terms of gaining more customers/subscribers who might not otherwise have been interested in either one separately otherwise.

Who are the key members of an M&A transaction deal team?

Mergers and acquisitions (M&A) transactions are complex and require a team of experts to navigate the various stages of the process. The M&A transaction team is made up of several key members, each with their own unique responsibilities and expertise. In this blog post, we will discuss who the key members of an M&A transaction team are and what their roles involve.

1. M&A Advisor: M&A Advisors are key members of the exit planning and succession planning team. They are responsible for identifying potential targets, conducting market research, and negotiating the terms of the transaction. Investment bankers also assist in the due diligence process and provide financial advice to the buyer.

2. Legal Counsel: Legal counsel is an essential member of the M&A transaction team. They are responsible for reviewing and drafting the legal documents associated with the transaction, such as the purchase agreement and any other agreements related to the transaction. They also advise on the legal and regulatory aspects of the transaction.

3. Accountants and Financial Advisors: Accountants and financial advisors are also key members of the M&A transaction team. They are responsible for conducting a thorough analysis of the target company's financials and providing advice on the financial aspects of the transaction. They also assist in the due diligence process and provide advice on structuring the transaction.

4. Integration Team: The integration team is responsible for planning and executing the integration of the target company into the acquiring company. This includes the integration of the target company's operations, culture, and employees into the acquiring company. The integration team should be composed of individuals from various departments within the acquiring company, such as business brokers, finance, human resources, and operations.

5. Operating Executives: Operating executives are key members of the M&A transaction team, particularly for strategic acquisitions. They are responsible for assessing the target company's operations and identifying any potential opportunities or challenges. They also assist in the due diligence process and provide advice on the operational aspects of the transaction.

6. Communication Team: The communication team is responsible for managing the communication between the buyer and the seller, as well as internal and external communication. This includes managing the communication strategy, preparing communications materials, and handling media relations.

In conclusion, M&A transactions are complex and require a team of experts to navigate the various stages of the process. The key members of an M&A transaction team include investment bankers, business brokers, legal counsel, accountants and financial advisors, integration team, operating executives and communication team.

Each member plays a crucial role in the transaction, providing expertise and guidance on the various aspects of the process, from identifying potential targets to closing the deal and integrating the target company into the acquiring company. It is important for the M&A team to work collaboratively to ensure a successful outcome.

Despite Recession Concerns, Six in Ten Healthcare and Life Sciences Investors Plan to Increase M&A Activity in 2023

Amid a challenging economic environment defined by persistent inflation, rising interest rates, recessionary concerns and falling equity values increasing uncertainty, healthcare and life sciences (HCLS) investors are poised to forge ahead with 60% of respondents indicating they plan to increase their M&A activity in 2023 according to new findings from the 2023 KPMG Healthcare and Life Sciences Investment Outlook.

"2022 is a story of both tailwinds and headwinds," said Ash Shehata, KPMG National Sector Leader Healthcare and Life Sciences. "Hospital systems are dealing with rising labor and supply costs while biopharma and medical device companies have been exposed to supply chain, logistics, and labor issues that slow down production. Now is the time for HCLS leaders to adjust their strategies to build durability and resilience within their companies."