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Marketing School - Digital Marketing and Online Marketing Tips

Critical Acquisition Mistakes We Made That You Can Avoid

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.61.3K Ratings

🗓️ 31 October 2024

⏱️ 10 minutes

🧾️ Download transcript

Summary

In episode #2853, Eric Siu and Neil Patel share personal experiences and insights on the challenges faced during acquisitions, including the need for active involvement in the business, having thorough due diligence, understanding cost structures, and the necessity of cultural integration within acquired companies. Don’t forget to help us grow by subscribing and liking on YouTube! Check out more of Eric’s content (Leveling UP YT) and Neil’s videos (Neil Patel YT)  TIME-STAMPED SHOW NOTES: (00:00) The Importance of Due Diligence in Acquisitions (02:59) Understanding Cost Structures and Profitability (06:07) Cultural Integration and Employee Engagement (09:28) That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more!   Leave Some Feedback: What should we talk about next?  Did you enjoy this episode? If so, please leave a short review.   Connect with Us:    Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency X @neilpatel X @ericosiu

Transcript

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0:00.0

the downside of acquisitions, what we have both learned from buying companies.

0:10.8

We'll tell you the upsides and downsides. I'll tell you more. I like to learn from mistakes.

0:15.0

So the first thing I would say is we wish that, I would say you want to do more due diligence, okay?

0:22.0

So when you're doing it, you can't,

0:24.0

unfortunately we're working with someone

0:25.2

that was trying to get us to close these deals

0:26.6

like in like 30, less than 30 days or so.

0:29.4

That didn't really, that wasn't favorable to the buyer or to sell it,

0:32.0

it was favorable to the broker at the end of the day.

0:34.7

I should have known that. I didn't. The second thing I would say is you have to vet. We didn't

0:41.5

vet enough of the leadership team that they had.

0:44.1

We didn't vet, you know, some of the logos that they had as well.

0:46.8

So we, because we didn't do enough due diligence, I guess that wraps over like the people,

0:51.8

the clients and all that. We couldn't find like a lot of

0:55.4

opportunities for synergies, right? Because when you're looking to buy a company you're looking for

0:58.7

you know complimentary services or a very strong leadership team or you know logos you can upsell and

1:03.6

cross-sell into right? We didn't have a lot of those synergies because we

1:07.2

didn't do enough due diligence so it all comes back to due diligence. The

1:10.0

second thing is when we bought these companies I we hired a GM and we let the GM handle everything and then I floated away from the business right right? That was probably the biggest mistake,

1:23.6

and that's why I'm so big on like you have to be involved now

1:26.9

in some way, shape, or form.

1:28.2

And actually one thing I wanted to talk about

...

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