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
Posted on 2nd October 2017 by Harry
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.
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?
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