For many founders, M&A can feel like a mysterious and intimidating process, especially for founder-led companies unfamiliar with private equity.
That’s exactly why we hosted a fireside chat last month with Padraic McConville, Partner at Rallyday, to take the mystery out of M&A and offer founders a real-world, honest take on what the process actually looks and feels like.
Here are a few takeaways:
1. M&A Is Ultimately a Human Relationship Business
- Success depends heavily on trust, authenticity, and genuine connection between buyer and seller.
- Jumping into numbers or due diligence too fast undermines rapport—“don’t say EBITDA in the first meeting.”
2. Founder-to-Scale-Up CEO Is a Critical Evolution
- First-time CEOs often struggle because they stay in “doer mode” instead of becoming leaders of leaders.
- Being open, curious, and not defensive allows CEOs to better evaluate fit and opportunity during M&A.
3. Culture Fit Is a Massive Value Driver
- Rallyday prioritizes culture and people, many potential acquisitions fail because values and leadership styles don’t align.
- Firms that roll up businesses without integration often miss long-term value.
4. Time Kills Deals—Momentum Matters
- M&A fatigue is real; long processes increase the chance that someone gets overwhelmed and walks away.
- Focused diligence and fast, intentional movement help preserve trust and energy.
5. Quality of Earnings (QofE) Breaks More Deals Than Anything Else
- Many transactions die when financials don’t hold up under a closer look around revenue and margins.
- A quick, early QofE check reduces wasted time for both sides.
6. Long-Term Relationship Building Wins the Best Deals
- Some partnerships develop over 3–4 years before a deal is possible.
- It’s never too early to build rapport and a relationship.
7. Independent Sponsors & Searchers Must Lean Into Authenticity
- Humility, self-awareness, and emotional intelligence matter more than financial modeling.
- Local ecosystems—lawyers, CPAs, wealth managers—are critical referral networks.
8. Add-On Acquisitions Work Only With Strategic Clarity
- M&A must serve a clear ambition—expansion of scope, scale, customers, or capabilities.
9. Integration Strategy Depends on Industry Emotion & Brand Sensitivity
- Emotional or consumer-facing businesses (e.g., childcare, eldercare, etc.) often require keeping brands intact longer.
- Back-end systems (ERP, CRM, ops) should usually be integrated to avoid value erosion.
10. The Market Is More Crowded Than Ever—Differentiation Is Key
- PE capital massively outnumbers quality deals, making value proposition clarity essential.
- Operating experience, leadership maturity, and personal development create an edge in today’s environment.