Seller Lessons in Flexibility, Trust, and Founder Engagement

About the Episode

Luke Smith, CEO and founder of Croud, a digital marketing agency with five global offices, discusses the unique nature of M&A deals. He shares Croud’s M&A journey, detailing five acquisitions ranging from small data businesses to larger digital marketing firms. Luke highlights the importance of flexible deal structures and maintaining trust with founders. He advises sellers to value their businesses and time their sales strategically and stresses the significance of cultural fit in successful acquisitions.

“Trust is such a big part of the whole M&A process.”

Luke Smith

What You’ll Learn

• No two M&A deals are the same: Each transaction is unique due to the diverse backgrounds of founders, business models, and motivations.
• Building trust and maintaining open communication with sellers is crucial for successful acquisitions: Honesty, flexibility, and a win-win mindset are key.
• Thorough due diligence is important, but it’s a balance: Going overboard can scare off potential sellers while cutting corners can lead to problems down the line.
• Timing the sale of a business is important: Sellers should aim to maximize value by selling at the right point in their growth trajectory.

Topics Covered

Want More? Related Resources: 

• M&A Reps & Warranties | A Complete Guide
• Indemnification in Purchase Agreements | M&A Basics
• M&A Negotiating Tactic #1 – Honesty

Meet Our Guest

Luke Smith

Global CEO, Croud | London, United Kingdom

Luke Smith is the co-founder and Global CEO of Croud, a leading independent digital agency he founded in 2011. Croud is a full-service global business, delivering innovative marketing solutions to top brands like Amazon Prime Video, Nespresso, and Ford, with over 600 employees across offices in the UK, the US, the Middle East, and North Africa.

LinkedIn: https://www.linkedin.com/in/lukesmithcroud/