City Unrulyversity - M&A for startups

1. © Scott Moeller, Cass Business School, 2015
Mergers & Acquisitions for Start-Ups:
When to Date and When to Marry?
27
May
2015
Prof
Sco0
Moeller
M&A
Research
Centre,
Cass
Business
School
@sco0moeller
Sco0
Bu0on
CEO
of
Unruly
@sco0bu0on

2. © Scott Moeller, Cass Business School, 2015

3. © Scott Moeller, Cass Business School, 2015
Mergers
can
bring
out
the
worst
in
people:
The
Seven
Deadly
Sins
of
M&A
• Give
me
a
be@er
job
with
more
money
or
give
me
a
bigger
redundancy
package
Greed
• I
can
do
the
job
be@er
than
my
counterpart
in
the
other
company:
it's
mine
or
I’m
going
to
leave
Pride
• More
power!
I
want
that
bigger
job.
Lust
• Everyone's
geKng
a
be@er
posiLon
(or
redundancy
package)
than
I
am
with
this
merger.
Envy
• I
can
just
wait
and
see
what
happens.
I
won’t
do
anything
now.
Sloth
• Big
is
be@er,
but
even
bigger
is
even
be@er.
Glu@ony
• I
hate
mergers
and
the
people
who
told
us
to
do
this
deal;
everything
was
fine
before!
Anger

4. Prepare to provide (or to need) air cover…
... as the unexpected WILL happen.

5. 5
Equity financing in a company’s life
cycle
Seed
Stage
Early
Stage
Expansion
Stage
M&A/
Buyout
IPO
Private Equity Public CapitalVenture Capital
M&A /
Secondary

6. © Scott Moeller, Cass Business School, 2015
Strategy
Price
Post-­‐merger
Integra2on
Should
we?
With
whom?
How
much?
How
structured?
How?

7. © Scott Moeller, Cass Business School, 2015
First
…
the
alternaLves
to
M&A
Merge
or
acquire
'Do
Nothing'
Internal
Growth
Divest
JVs
/
Strategic
Alliances
Minority
Investments

8. © Scott Moeller, Cass Business School, 2015
Survival
Kept
old
job,
38%
Promoted,
21%
Demoted,
7%
Fired,
34%
Post-­‐Deal

9. © Scott Moeller, Cass Business School, 2015
One
final
thought
…
M&A
drives
surge
in
drinking
problems
Lina
Saigol,
European
M&A
Correspondent
1
September
2006,
19:32
The
pressures
of
the
recent
boom
in
mergers
and
acquisiLons
have
driven
a
surge
in
alcohol
addicLon
among
City
professionals
such
as
investment
bankers,
lawyers
and
accountants,
according
to
counselling
organisaLons
and
a@endance
levels
at
Alcoholics
Anonymous.

10. © Scott Moeller, Cass Business School, 2015
Mergers & Acquisitions for Start-Ups:
When to Date and When to Marry?
27
May
2015
Prof
Sco0
Moeller
M&A
Research
Centre,
Cass
Business
School
@sco0moeller
Sco0
Bu0on
CEO
of
Unruly
@sco0bu0on