Prompt Cast
The Mysterious Process of M&A Deals: How Conversations Between Corp Dev and Startups Begin
TLDR Taylor Barada, head of Corp Dev at Adobe, sheds light on the process of M&A deals, emphasizing the importance of building relationships and credibility between corp dev and startups. The corporate development team at Adobe focuses on strategic acquisitions that align with their core business and actively seeks out opportunities in the market.
Timestamped Summary
00:00
Taylor Barada, head of Corp Dev at Adobe, joins the podcast to discuss the process of M&A deals and how conversations between corp dev and startups typically begin.
05:32
The process of M&A deals can often be mysterious and relationship-driven, with conversations between corp dev and startups starting with a simple connection and developing over time to establish credibility and fit.
11:18
The process of M&A deals can often be mysterious and relationship-driven, with conversations between corp dev and startups starting with a simple connection and developing over time to establish credibility and fit.
17:03
The process of M&A deals involves a series of steps, including an initial meeting to discuss product vision and technology, sharing financial information, and eventually reaching a milestone such as a letter of intent (LOI).
22:50
The business owner is critical throughout the entire acquisition process, working closely with the corporate development team and serving as an executive sponsor and business owner, with the understanding that no one can make them do anything they don't want to do.
27:51
Building a collaborative relationship between the business owner and the corporate development team is crucial in order to effectively communicate the value and excitement of the acquisition, and to avoid potential missteps and deal-breaking situations.
32:54
The corporate development team at Adobe sources potential acquisitions through various methods, including introductions from business units, partnerships, and actively seeking out opportunities in the market, with the goal of finding companies that align with their strategic interests.
38:29
The corporate development team at Adobe focuses on strategic acquisitions that align with their core business, such as tech and talent in their existing areas, and smaller one-step adjacencies, while being cautious about undisciplined diversification and ensuring a high success rate for the deals they pursue.
43:37
The corporate development team at Adobe receives a large number of emails with potential acquisition opportunities, but they are selective in pursuing deals that align with their strategy and quickly provide answers if they are not interested.
48:31
The corporate development team at Adobe focuses on three big trends: making mobile a tail end across the entire business, unlocking network effects in the SaaS-based enterprise, and making data and content strategic assets in the B2B market.
53:39
Adobe's corporate development team focuses on culture, post-mortem evaluations, and long-term thinking to ensure successful acquisitions and avoid the tragedy of destroying a startup's labor of love.
59:13
Facebook is scared of Snapchat due to its high engagement and is trying to make Instagram the hub for the younger generation.
01:04:16
Taylor Barada, head of Corp Dev at Adobe, discusses the availability of capital in the venture community and the importance of providing capital to businesses that are changing the world.
Categories:
Technology
Business
