E25: The Art & Science of Sourcing Deals

Summary

In this episode, host Christian Hassold chats with Ayelet Shipley, the head of corporate development and deal management for Speed M&A by Jones-Spross. Ayelet shares her unique journey from aspiring therapist to corporate development leader, emphasizing the importance of sales skills and psychological insights in the M&A process. The conversation delves into sourcing opportunities, qualifying conversations, and understanding client expectations, drawing the connections between the similarities of enterprise sales and M&A deal origination.

In this conversation, Ayelet and Christian delve into the intricacies of the acquisition process, focusing on understanding seller motivations, evaluating business fit, and navigating decision-making dynamics. They discuss the importance of asking specific and open-ended questions to understand the intent and motivations of potential sellers and how to identify points of alignment or misalignment. They also discuss the importance of rapport building and the sell-side bankers' valuable role in the process.

Takeaways

• Ayelet transitioned from a potential career in therapy to corporate development after realizing her skills could be applied in business.
• Understanding acquisition candidate pain points is crucial in the discovery process
• The process of sourcing opportunities requires a strategic approach to identify potential targets. Understanding seller motivations is crucial for alignment.
• Setting clear expectations about deal structures is important
• Qualifying questions help determine if a deal is worth pursuing further
• Ayelet emphasizes the importance of her background in psychology and sales as foundational for making her successful in this work.
• Ayelet emphasizes the importance of psychological insights in sales conversations.
• Transparency throughout the process fosters better outcomes.

Chapters

00:00 Introduction

00:55 Ayelet's Background in Psychology and Sales

07:15 Goals of Call 1

11:26 Deciding to Advance Past Call One

13:54 Setting Valuation Expectations 

15:30 Goals of Call 2

18:48 Matching Verbal Claims to Financials

21:55 Advancing Further and Disqualifiers

24:48 Scoring to Qualify Deals

25:05 Keeping Evaluation Criteria Simple

28:48 Identifying Decision-Makers 

31:10 Distinguishing Uncommitted Sellers

33:36 Working with Sellside Bankers

39:33 Conclusion

Connect with Christian & In/organic Podcast

Christian's LinkedIn: https://www.linkedin.com/in/hassold/

In/organic on LinkedIn: https://www.linkedin.com/company/inorganic-podcast

In/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featured

Connect with E24 guest, Ayelet Shipley on LinkedIn

https://www.linkedin.com/in/ayelet-shipley-b16330149/

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