5 secrets to effective M&A

ECI has supported its portfolio to make 80+ acquisitions, which means we’ve seen the power of an effective acquisition strategy. We’ve previously discussed the importance of the right M&A strategy, but the M&A market is highly competitive. How do you turn that strategy into successful execution? The ECI Origination Team, who are on hand to support management teams throughout the entire life cycle of acquisitions, and our portfolio, share the top five secrets they’ve learned. 

1. Smart use of technology

Technology can be a supercharger for buy-and-build strategies. Research is often done manually, involving extensive data collection, which is then managed in a spreadsheet alongside an M&A pipeline (and sometimes left to gather dust!). This kind of work is ideal for automation. But what does that look like in practice? Skyler ver Bruggen explains how Amplifind™360 helps portfolio companies manage their M&A pipeline more effectively.

“Amplifind™360 is designed to help our portfolio companies track and manage their pipeline of targets while also enriching their data from market mapping. It’s not a sourcing tool, but rather a way to provide valuable insights.  

Managing an M&A pipeline in Excel can be inefficient as data quickly becomes outdated, and collaboration is difficult. With Amplifind™360, we’ve created a platform that makes this process far more seamless and interactive. It enables real-time collaboration, keeps information structured and accessible, and ensures that companies have a clearer, data-driven view of their opportunities. We’ve seen that moving to a more dynamic system like this is a step up for our portfolio companies and has helped make their M&A processes more efficient.”

2. Win strategies

Once you know your top targets, how do you change your strategy to effectively win the deal? Skyler ver Bruggen, Director in ECI’s Origination Team, not only thinks through these strategies for ECI’s own pipeline, but also works closely with management teams to think through effective strategies. She comments:

“Firstly, your win strategy may differ between ‘on market’ and ‘off market’ acquisitions. This will influence the speed at which you’ll have to move, and the competitive dynamics. In both cases, it’s important to think about the different stakeholders. One thing I’ve found is that it’s important to give yourself some space outside the usual deal conversations to do this, and make room for some ‘blue sky thinking.’ The relationship is key. Who are the most important stakeholders and how well do you know them? If there are gaps, how can you do more? Then think about what motivates each of the stakeholders before putting forward an offer. Will your offer meet those motivations? Understanding your M&A pipeline as a whole also plays a role. How important this acquisition is to your growth strategy? If it has scarcity value or brings a product or capability you need, that will influence what price you can pay to win.”

3. Effectively unlocking targets 

Everyone loves the idea of an off-market deal – it’s often seen as the ideal outcome. But in reality, that’s not always possible. Paul Burton, Chief Strategy Officer at Commify, explains why long-term relationship-building is the key to success in M&A:

“Everyone loves off-market deals – that’s always the nirvana. But let’s be practical; it’s not always possible. You can’t force someone to sell if they’re not ready, so for us, it’s really about building long-term relationships.

Whether a deal ends up being off-market or turns into a more structured sale process, the best outcomes come from identifying a business early, developing trust with the owners, and not being pushy. That relationship-building is crucial. This might be my day job, but for most business owners, selling their company is a once-in-a-lifetime decision and far outside their comfort zone. Having that empathy, showing them you’re the right partner, and being their preferred buyer when the time is right puts you in the best position – no matter what the process looks like.”

4. Incorporating culture

When assessing an acquisition target, cultural fit is one of the hardest and most crucial factors to evaluate. A well-aligned culture makes integration smoother, while a mismatch can create long-term challenges. Andrew Collis, CFO at Moneypenny, shares his perspective on why cultural alignment and communication are key: 

“Having a clear plan is essential to ensure everyone is aligned. If management is staying, it’s really important that they buy into that plan. If you want them to stick around, they need to feel involved. Listen to them, respect their ideas, and recognise that they know the business better than anyone. 

Another big lesson we’ve learned is the importance of winning the hearts and minds of the staff who are staying. Take the time to engage with them, explain what joining a larger group means, why the business was acquired, and what opportunities it creates for them. Whether it’s career progression, stability, or new resources, helping them understand the bigger picture makes a real difference. It’s something we’ve focused on more over time, and it’s been a key part of making integrations successful.”

5. Integration

So, you have a hit! You have successfully made the acquisition. Now the hard work starts. Effective buy and build is all about integration and having a repeatable and scalable process. As CFO at Moneypenny, Andrew Collis has overseen four strategic acquisitions since our investment. How has he put successful integration at the heart of M&A?

“For successful integration, communicating a clear plan is key. This should cover everything from communications to staff, communications to customers, system migration, technology, and bank accounts. Each item within the plan should have a clear owner. Regular project communication is vital as the plan is executed. There will be bumps in the road along the way but having regular project meetings will allow any issues to be resolved effectively and as a team. At the end of the integration assess its success against the criteria initially laid out in the business case, and finally take forward and document the learnings for the next acquisition (as there will be learnings!)”