20VC: 3 Things Acquirers Look For In Startup M&A’s, How To Price A Startup Acquisition & The Biggest Risk of M&A with Matt Switzer, SVP of Corporate Development @ Hootsuite
Matt Switzer is the Senior Vice President of Strategy and Corporate Development @ Hootsuite, the social media management platform that has raised venture funding from some of the best in the world including Accel, Insight Venture Partners and Fidelity. At HootSuite, Matt and his team have raised over $250m in funding, acquired 8 companies and launched 4 new products. Prior to Hootsuite, Matt was on the other side of the table as a VC, where he helped to establish a new fund and manage an incubator.
In Today’s Episode You Will Learn:
1.) How Matt made his way into the world of VC and then decided to jump to the other side of the table as acquirer with Hootsuite?
2.) What is the build, buy or partner thinking process? When analysing markets, what does that deep dive and examination look like and entail? How does Hootsuite identify and select startups within the identified markets?
3.) How does Hootsuite most like to interact with startups in pipe? What does the relationship building look like? What platforms and tools are used to monitor those relationships post initial meeting?
4.) What does the internal conviction building process look like around a potential deal? What is the traditional structure of such a deal? How does Matt assess price sensitivity and it’s ties to product market fit achieved by the startup?
5.) From the other side of the table, when should startups look to be building their M&A pipe? In conversations with potential acquirers, what are the foundations for them to remember? What role do VCs play and value do they provide in these conversations?
Items Mentioned In Today’s Show:
Matt’s Fave Book: Red Notice
Matt’s Fave Blog: Tom Tunguz
Matt’s Most Recent Acquisition: AdEspresso
If you are an early stage startup, the right infrastructure and support systems are critical, that is where First Republic is so good. First Republic’s resources network and expertise allow entrepreneurs to customise a solid foundation for their business. Why First Republic, well you get to leverage their incredible network of VC firms to prepare you for future fundraising events, you get to count on a single point of contact that will be there for you and your employees, you get access to exclusive events and networking opportunities. Their clients include the likes of Instacart, eShares and Wish just to name a few. Check it out by heading over to innovation.firstrepublic.com
Segment allows you to collect data from every platform (mobile, web, server, cloud apps) and load it into Segment. Segment then sends the customer data to your tools and destinations where it can be used most effectively, destinations include email, analytics, warehouses, helpdesks and more. With over 200 sources and destinations on the Segment platform that can empower your team, Segment really is the last integration you will ever do and that is why the world’s best companies use segment to drive growth and revenue including Atlassian, New Relic and Crate & Barrel. Simply head over to segment.com to find out more.