Before hunting for acquisitions, the internal business owner (deal sponsor) must write a thesis answering "what problem are we solving?" This prevents reactive M&A driven by inbound opportunities and ensures strategic alignment from the start, separating the "why" from the "who."
The best way to learn M&A is not by being the first Corp Dev hire. Instead, start at a company with a mature, well-developed M&A function. This provides exposure to established best practices and a foundational playbook that can be adapted to other environments later in your career.
Corporate Development facilitates M&A but should not be the "sponsor." The true sponsor is the internal leader from product or engineering who will own the acquisition's success post-close. This distinction ensures clear accountability and prevents deals that lack a dedicated internal champion.
Early signals of cultural alignment exist in a target's public materials. An outdated copyright year or a poorly designed website can indicate a lack of attention to detail that will clash with a design-driven, detail-oriented acquirer. These subtle clues reveal internal standards before the first meeting.
A detailed, rigid integration plan is fragile. A better approach is to create an "integration thesis" that sets clear "goalposts" and timelines for making key decisions. This allows for flexibility and data-informed choices (e.g., using A/B tests post-close) rather than locking into pre-deal assumptions.
Clarify M&A strategy with the "Four T’s": Talent (acqui-hires), Tech (IP acceleration), Traction (customers/revenue), and Terrain (long-term bets). Each has different diligence needs and success metrics, and companies should build M&A muscle by mastering them in that order.
A separate Integration Management Office (IMO) creates a risky handoff. A better model for agile teams is for the Corp Dev professional who sourced and led the deal to pivot and own the integration plan post-close. This ensures the original deal thesis is carried through execution without loss of context.
Before an LOI, share your high-level vision, then have the target's founders pitch back their own 6- and 12-month post-acquisition roadmap. This pre-commitment exercise reveals true alignment and integration potential far more effectively than traditional diligence, creating a joint vision early on.