Corporate buyers are notoriously secretive and rarely reveal their inner workings. That’s why our latest episode of Built to Sell Radio is so special: it offers a rare peek behind the curtain of corporate M&A (i.e. big companies buying little companies).
Our guest is Christopher Vollmond-Carstens, Chief M&A Officer at Ntiva. Ntiva provides IT services to businesses, ensuring their technology runs smoothly—from managing computer systems to protecting against cyber threats. Over the past few years, Christopher has successfully acquired fifteen companies. This week, we delve into his thought process to understand how he approaches acquisitions.
Christopher’s path to success is nothing short of impressive. He began as the captain of the swim team and an All-American at Williams College, an elite private school. After graduating, he worked on Wall Street at Morgan Stanley. He then earned an MBA from the University of Virginia, one of the top MBA programs globally, and further honed his skills at Deloitte before joining Ntiva.
In this episode, part of our “Inside the Mind of an Acquirer” series, you’ll get a unique look inside the corporate development division of a big company. You’ll learn how to:
- Align your business with the investment criteria of a corporate buyer
- Navigate the complexities of becoming a “proprietary deal”
- Employ a structured process to influence an acquirer’s decision-making
- Successfully manage the diligence process
- Weigh the pros and cons of creating an auction for your business
- Leverage the priorities of a corporate development executive to achieve your desired deal
- Avoid being re-traded on
Christopher offers a crucial insight into what corporate buyers seek: “Corporate buyers thrive on stability. Show us a recurring revenue model and a strong team, and you’re already ahead in the game.”
Discover valuable strategies for positioning your business for a successful sale to a corporate buyer.
Quote of the Week
Corporate buyers thrive on stability. Show us a recurring revenue model and a strong team, and you’re already ahead in the game.
– Christopher Vollmond-Carstens, Chief M&A Officer at Ntiva
Deals
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MOGAS Industries, a Houston-based company that makes valves for extreme conditions and also provides maintenance services, is being acquired by Flowserve Corporation for $290 million, with an additional potential earnout of $15 million based on future earnings. Listed on the New York Stock Exchange under FLS, Flowserve is paying about 7.5 times MOGAS’ projected 2024 earnings before interest, taxes, depreciation, and amortization.
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The Redwood Group, LLC, based in Montana, is selling its Specialty Crop Food Ingredient Division to Above Food Ingredients Inc., which is listed on the Nasdaq under ABVE and ABVE.W. The transaction is valued at US$34,000,000, plus additional adjustments for working capital. The division’s adjusted EBITDA is approximately US$5.3 million, representing a purchase multiple of about 6.4 times its adjusted EBITDA. The Above Food company will pay US$8,100,000 in cash and will issue 5,600,000 new common shares as part of the transaction.
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