Growth Through Acquisitions | Wharton Scale School

In the competitive environment of technology, speed to market is often a key to success. But creating every capability internally often takes the time and skills many startups fail to have.
In this "Wharton Scale School" session, we examine when to look outside the firm for missing pieces, how to find a company with the right fit, and how to price the deal in a way that retains value.
The Wharton Scale School workshop series, hosted by Wharton San Francisco and Venture Lab, guides entrepreneurs making the transition from a successful startup to a large enterprise. Hear from experts who share solutions to critical challenges faced by rapidly growing companies. Learn more: whr.tn/scaleschool
Panelists:
David Wessels, ENG'92, W'92
Adjunct Professor of Finance, The Wharton School
Vicente de Baca, WG'09
Partner, v2 Ventures
Anton Hanebrink, WG'04
Chief Corporate Strategy & Development Officer, Intuit
Jamie Kim, WG'14
Corporate Development & Strategy, E la Carte Inc.
#growththroughacquisitions #mergersandacquisitions #m&a
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[@John27477]

Received a ton of value from the moderator, the panelists and the audience. Thank you so much.

[@jymiv7640]

Im 44… a newly entrepreneur, on my way to transforming myself into a money conscious businessman with no prior experience other then reading & learning from books like Think & Grow Rich, Million Dollar Habits & listening to people like Jim Rohn etc… videos like this share so much wonderful & useful information, thank you Wharton👍… The true key to success is the person you need to become in order to be successful… so I began my transformation about 5 years ago on my way to becoming wealthy🔥💪🏻

[@kiingdrew]

Keep pushing!!!

[@elvisisalive2716]

Jim Rohn is a total sheister, get a better role model. Learn from real people

[@jymiv7640]

@@elvisisalive2716 Smart individuals take from many people... that's called wisdom. The assumption that I only learn from him & not others only makes you look immature, foolish & closed minded.

[@elvisisalive2716]

@@jymiv7640 stop virtue signalling , go read another book

[@studentstudent5044]

You got this brother!❤️ I’m a 21 year old business school student with the same ambitions. Maybe we’ll meet some day.

[@thangduongtrong5729]

good lecture. it is concise and deep. strategic view for big company is discussed and tactical view for small campany is also discussed

[@maulikharia1308]

Excellent lecture! Acquisitions have become more common nowadays as a means of inorganic growth. But the scaling doesn't work out all the time and leads to heavy loses.

[@matthewellis3004]

Listening to this from the perspective of a small General Contractor, looking for parallels and how I would apply to my business

[@toratora9009]

Its a game between Advisories and clients to get a higher valuation. I been doing this and theres a lots more to it. You have to be aligned to the BS or itll not work

[@dungbui1341]

What do you mean aligned to the BS or it won't work? Can you elaborate?

[@runer007]

Great to see a superb teacher in action.

[@fasikahunde53]

Fascinating and enlightening conversation!

[@elke9161]

Uncertainty it took me 5 years to stop trying to predict what about to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.

[@bubbleleaftea]

He really is: excellent cadence and vocabulary, kept it succinct enough where one could keep up but at the same time advanced enough so that you must pay constant attention.

[@HarryJoiner]

41:55 - nice, logical breakdown

[@waysofaquarius649]

Every time I listen to someone talking about their industry about it not being great it comes off as they don’t want you to do it because they want all the deals. Plus, he talks about how his partner can help you grow your business. Using their stuff @ 7:04

[@HappySmartCityForum]

M&A is such a great thrill and an amazing way to avoid headaches as an investor.

[@ssuwandi3240]

Then Softbank is a Genius

[@whatsfordinner1695]

I really like how Hanebrink explains everything. For example at @57:35 - super clear and concise answers. Compare to how de Baca answered the question @55:00 - ... so what was your strat??? How do you value it?

[@InSaNeRuSsELL59]

how de Baca made it out of back office is beyond me...

[@Joseph_CPA_JD_LL.M]

Lots of glitz and glamour with Wharton, I enjoyed it, but now I see how it's as much of a brand name as is Mercedes-Benz. No question there have outstanding resources. Where is Elon Musk on this?

[@carolinea.441]

Amazing class!!

[@chrispeng121]

It was so hilarious when the panelist answered the question regarding valuation. More or less, they told me they didn't do any valuation. In fact, they twisted their assumptions to increase the price to outbid others. Therefore, more than 90% of M&A in the corporate world value destruction rather than value creation. Luckily, you hide it in your consolidated financial statements.

[@ismaileyaqub6335]

@@sanansa4567 I mean, your example is anti-competitive and should not have been allowed...

[@Joseph_CPA_JD_LL.M]

It seems Vincent was talking all hypothetical. It seems he was recalling information from what he read in text books.

[@dracobyronwayne]

Precaution.

[@beedebawng2556]

What are you? 😊

[@alvareza3]

Winners curse.

[@richardgodwin2967]

Enjoy this. Suggestion: It is difficult to hear the audience/student questions. On future videos would it be possible to pass a microphone around or have a central mike? Thanks.

[@mastershredder2002]

1) do acquisition 2) let MBAs take control of acquisition 3) watch acquired company fail 4) watch company fail 5) get new job

[@osazemeusen1091]

hahahahahahaha

[@100millionsats]

Yup, acquisition can be the fastest way to destroy a business. Got to be god dam sure first.

[@radio_nowhere]

There was another great insight. Buy businesses who are willing to sell at 80 cents to the dollar (for whenever reason). That's a real, net positive roll-up. Perhaps, the only kind.

[@joggyjames]

brilliant

[@mohamedgaus2096]

@@osazemeusen1091 lo

[@abhyunnati8589]

Learned a lot from this discussion

[@arpsri9675]

21:43 if we are big, we buy. (But still, how much it will cost?) If we are small we develope from internal. We know that trend would be no cord, but now to add value on top. Even the knowledge is out there, but we also buy to level up knowledge. Yes, speed is important. If we analyze that the speed of development from internal is too long, it might be too late later on. Sometime, we focus on knowledge more than short term profit. We M&A, we safe time. M&A is just the starting point of internal development for the big company.

[@CaffeinatedMnA]

Some interesting insights, thanks for sharing!!

[@sukilee73]

Too big to grow, nice shot. Especially, the best period of the start-up is the starting point, you will feel the pain after that phase. No matter what, MBA is good.

[@piscescapital6294]

Anybody know what book from david wessels is he referring at the beginning “the bible of valuing a company”

[@FactsAbout1234]

Right now,Hexo is following the same strategy.

[@michaelanthonygutierrez]

Thank you Carl Ulrick.

[@named161]

Awesome content!

[@arpsri9675]

1. Type of business mainly growth by brain power 2. Big company M&A to safe time for development. When they buy, their starting point of development is not zero. But they have to think about what is next? What they can add up to what it is already developed but the seller. 3. But another side, if they buy. They give money power to the seller. They have money to develop something even better. 4. If number 3 is the case, go back to think about what is next that you will add up? Gauge it.

[@rossfriedman6570]

The M&A way you pay debt and securities in a particular order is an attempt to maximize return on equity, right?

[@businessforbreakfast3208]

Very interesting discussion

[@SuperBusinessManager]

Great lecture! Thanks for sharing!

[@theguest103]

im the girl casually drinking a glass of wine on the right throughout all of this

[@leon4695]

Entrepreneurship school, Entrepreneurship dedicated to someone else's established thought process to make profit happy learning people

[@ayashabegam5211]

Mk..k

[@leon4695]

@@ayashabegam5211 🕴

[@thangduongtrong5729]

good lecture. I invest in stocks in vietnam. I want to know how company grow. this lecture will permit me to check whether acquisition is good or bad. it is simple. but if we dont join this lecture. we dont know. HOW TO FIND SIMILAR LECTURE ON KZbin, pls, tell me. thanks

[@bharatmittal9937]

Great. Accountants also need to be fully acquainted with M&As...

[@arpsri9675]

47:30 why do you need to M&A your competitor? When you start to see their market share increase, you just add up option of being the same with digital way of ordering. What is your brand position? You do what you do, but give your customers options of how they want to operate front of house.....well that seems quite a revenue focus. Not product identity.

[@beatsbythekilo]

thank u!

[@makeaniiimpactYT]

How many acquisition bonuses does it take a new MBA grad to zero out their loan..1...2...3....3

[@alhadifarjalla]

Gi bill is zero

[@GoodSeedsGoodTrees]

25:49 dude on the right is giving the guy on his phone the dead eye then turns away as soon as he looks up

[@user-pu1lj7zg5w]

Thank you so mach👍

[@plannerjoy]

18:36 Lecture Notes How to use M&As and Internal Development to serve my existing customers

[@osman01003]

That's why one should not get an MBA.

[@michaelbraun5074]

45:29

[@dert4291]

lollll

[@fleischwolf82]

Sooo much blovating....

[@Big-Show1]

"MBA's are useless" - It's all about having the ability to network with like-minded people and having a piece of paper to hang on the wall.

[@mikehoward9211]

what? you mean an MBA from Biola U or Argosy U is not the same as an MBA from Wharton or Harvard or Stanford?

[@cici3079]

This video this disproves your comment.

[@kvin9210]

Well tell that to the people who graduated from top business schools around the world and making 6 figures. The people saying MBAs are useless are the ones that probably got it from a place not reputable or don't have them at all.

[@jeeshyyy]

1:22:19 is that dude drinking beer during a lecture?

[@lisageorge4599]

Lol that's not beer.

[@kylealexander7621]

We often drink booze at postgraduate guest lectures. They're normally at 6/7/8pm.

[@stannis7656]

4:59 guy is drinking red wine in the front row...so probably

[@ziggyc4474]

What does F.i.t.stand for ?

[@monroetrask8753]

Fashion Institute of Technology :)

[@jeffreysucipto7104]

everyone has a plan till they get punch in the face

[@ketansharma855]

Ahhh yes i guess this is the vedio byjus founder watched. Makes sense now

[@user-tr7do9kn4n]

왜 알고리즘이 추천해주는지....모르겠지만.... Anyway, Thank you for good lecture

[@dracobyronwayne]

Precaution.

[@user-pu1lj7zg5w]

Think you relatives🎉

[@PipoLipo9000]

The panelist in the middle knows his stuff around targeting, negotiating, integrating. Made the other two look like they were out of their depth.

[@AmitSharma-bj1yo]

I am curious - how they do pricing?

[@v3gas102]

DCF/LBO, Multiples of Revenue, Comparables or Market Cap. Usually a valuation takes 3-4 of these places them on a “football field” graph and averages out some rationalization for the price range they land on.

[@tomcotter4299]

TL;DR - Do everything except improve your product/service offering. MBA logic 👍

[@austinaustin7546]

taking his hands in and out of his pockets at the beginning is driving me nuts.

[@ChitranjanBaghiofficial]

yup, it was as if he is stuck in a loop.

[@adamdahl3080]

QLA

[@MultiGonon]

Is it what this video is all about? I don't want to waste valuable data since i can get from the source Dan Pena Sn.

[@stevenvojacek779]

Dan Pena is a fraud haha

[@RomilCPatel]

@@MultiGonon It’s not exactly the same but similar

[@YashSharma-xd5rg]

It's actually superficial growth. The products will always seem disconnected. Check coupling between fb n insta. Pretty poor. Then WhatsApp is further a disgruntled adopted child.. yet because of the each ability of the founders money is churned..

[@vladmkrtumyan1660]

That’s softwares main problem

[@STYLES2482]

👍🏻

[@shashidharshettar3846]

My son is from Wharton

[@saxel3918]

That gesture is bad for your balls and circulation 🤣🤣🤣

[@VictorPRGP]

"You know...", "you know...", "you know..."

[@shantellmcneal3915]

14:39

[@w.r.7440]

Why do I keep hearing murders and acquisitions? 😂

[@MiyanPunctureWaleVsBrahmanVaad]

You need to see a doc. ENT specialist.

[@mvg75]

What; here's a Ton;.

[@iceyred6668]

iicm='s/management

[@kdub1242]

This school was just acquired by another school, and all you students have been terminated.

[@marciamarquene5753]

G vi o vídeo maravilhoso d fui lá fora e só r viu se o mesmo horário e depois da passagem da passagem e ela estava esperando aqui terça feira e depois da passagem da mensalidade da passagem da mensalidade da mensalidade da passagem e o valor da mensalidade

[@elcapitan6126]

i.e. the Autodesk way. great for pure profit. not great for the underlying (real) economy and market. this approach is great for investors not for the market as a whole.

[@ohiotoledo3787]

Murders and executions

[@tawonamagede6637]

Mergers and acquisitions .

[@tawonamagede6637]

Favourite topic

[@Rd-bi7vr]

Useless degree that tries to standardize random behavior that is ; management decisions . More value in getting a technical degree combined with experience.

[@user-sy8yp2mf1j]

sd Michigan super Tuesday

[@user-sy8yp2mf1j]

Sag Delivery

[@user-sy8yp2mf1j]

Celebrity endorsements

[@user-sy8yp2mf1j]

Add Philadelphia

[@XPLAINMYNAME]

Qla qla qla qla qla qla

[@marciamarquene5753]

C e te falo ok obrigada pela informação sobre esse mês e valor total e te envio da mensalidade e te

[@iceyred6668]

Acquisitions=++Pnetworth+k

[@iceyred6668]

iicm='s/management //nd.D management/40%

[@marciamarquene5753]

E o valor e o valor e o valor da passagem e o mesmo valor e o valor e o valor e valor total e o mesmo valor da passagem e o valor e valor total entre o mesmo valor e o mesmo valor e o mesmo valor da passagem da mensalidade da passagem

[@jorgegomez524]

monopolies are good? not for the people

[@vladmkrtumyan1660]

100%

[@iceyred6668]

Acquisitions=++Pnetworth+k //nd.D

[@thangduongtrong5729]

loud is not enough, too low

[@marciamarquene5753]

F xi tô aqui fora esperando o mesmo valor da mensalidade da passagem da mensalidade e te envio o comprovante da passagem e o valor e o valor da passagem e o valor da mensalidade da passagem da mensalidade da mensalidade e o valor da

[@marciamarquene5753]

G vi o mesmo valor e valor total entre se for w se for w se for só r agradeço e desculpa mas estou aqui fora esperando o valor e valor total entre o valor e o valor da mensalidade da passagem da passagem e o mesmo valor da passagem e ela estava ótimo e

[@marciamarquene5753]

T amo demais r era ri alto alto falante da passagem e o valor e o valor da passagem da passagem da passagem da passagem da mensalidade da passagem da mensalidade e te falo ok bjs te mandar mensagem e

[@marciamarquene5753]

F xi tô aqui fora esperando o valor da passagem da passagem da passagem e o mesmo horário da manhã e depois da passagem e ela estava esperando aqui fora esperando o valor e o mesmo valor e

[@marciamarquene5753]

G o valor da passagem e te falo w r viu o mesmo valor da mensalidade e ter o valor da mensalidade da mensalidade e o mesmo horário da manhã r e te falo se ela quiser ir lá e o mesmo horário da passagem da mensalidade da

[@marciamarquene5753]

Xv da constituição federal e valor e o mesmo horário e o mesmo horário da manhã e o valor e valor total e te falo se ela quiser ir comigo e te envio o comprovante lá e pegar ET o mesmo valor e valor total e te envio o comprovante lá e o mesmo horário da manhã r

[@marciamarquene5753]

V o mesmo valor e valor e o mesmo valor da passagem da mensalidade da mensalidade e te falo se ela for lá te dou o valor da mensalidade e o valor da passagem e o mesmo horário e depois da passagem e te falo se der certo w w r w se quiser vir

[@apexvadeor3670]

so for MNA just be full of shit buy it low as you can beat em down to , buy it trying to use no money still and then hope for the best

[@JoseFernandez78]

Great video but the amount of corporate jargon and chewed words, after years of lockdown and endless meetings, makes me gag.

[@fleur257]

The prof was good. No real substance in anything the guests had to say. Especially, the Anton guy, just a lot of blah blah.

[@marciamarquene5753]

F xi w r viu se e valor total e o valor e o e o valor da passagem e o mesmo valor e o mesmo valor e valor total e ela quiser vir y se for só f e ela quiser ir lá e

[@conveythis]

Really uninspiring, boring discussion of sweet talking MBAs. No clear hints, no clear advice. Waste of time.

[@teamtoken]

Totally agree, but thats always MBA/Business school talk. Vomit out a whole word salad to make yourself sound smart and try to convince people you can deliver value when you damn well know you can’t.

[@Translationcloud]

@@teamtoken Haha, I agree

[@marciamarquene5753]

F xi g Du ei tô esperando o f xi tô aqui esperando aqui terça feira então então só r o mesmo horário e depois te dou retorno aqui e o valor e valor total entre o valor

[@arpsri9675]

5% of the 8% of what? This is unclear, you can just pre-calculate and say it in percent out of 100 % of what you are talking about. This is prep speech?

[@rolandlundall133]

This just America's version of socialism called monopoly. When you buy up the competition to scale it is extreme socialism not capitalism.

[@troymann5115]

if you had actually watched the video you would have noticed that no one was talking about buying up the competition. The whole point is that revenues are falling and markets are more competitive than ever, so it may make sense to purchase expertise in a trending sector rather than grow it.

[@xjsnjkil2070]

Wrong. Capitalism is more likely to create a monopoly. I bet you don't even know socialism and capitalism. You are the guy might shout "USA USA" lol.

[@rolandlundall133]

@@xjsnjkil2070 Hi. I don't think you read or fully understand my comment. It takes a bit to analyse what I said. I was saying exact what you are saying but in reverse to make the point that America thinks it's this great capitalist country but in fact they have more socialism then they think.

[@JackyTMusic]

@@rolandlundall133 Perhaps the nomenclature is off... You are using the term 'capitalism' to mean 'innovation' and 'independant growth' in regards to companies out competing each other with products and services and letting the free market decide on their value, correct? Perhaps thats where the confusion lies above for the dude. Buying up the competition with no focus on the greater good of the industry or the consumer/client (human) isnt a fitting analogue for socialism, as much as capitalism isnt a deft analogue for innovation driven competition.

[@rolandlundall133]

@@JackyTMusic I don't know if you have read up enough on socialism but one of it's fundamentals is to stop competition by creating monopolies. It happens everyday in America in the corporate world. Innovation and free maket is then stopped. America is more socialistic then most people know.

[@_spicypainliquor]

The amount of hair loss in this room is craaazy

[@africanative986]

Eww his son watches youtube videos?!?

[@TheOpennose]

what a waste of time

[@x0UncleSam0x]

So... Slow...

[@JULIORODRIGUEZ-lg2fj]

super weak

[@ArtificiallyConcious]

Y?

[@sencanboz2645]

Nicht verschlüsselt...!!! Keine Gebühren fällig!

[@iceyred6668]

Salers/building/agreed'ment //nd.D