How To Present Smaller Acquisitions With Confidence In Your Earnings Calls
Question from an IRO:
How can I present routine, smaller acquisitions with confidence in my earnings call?
Here's how we see it:
Investors are often cautious with big, splashy acquisitions—there’s plenty that can go wrong. We have shared best practices for such communications previously. But what about routine, smaller deals? These are typically announced via press release, but I suggest also covering them in your next earnings call—that’s where I want to focus today. I’ll share a real-world example at the end to bring these ideas to life.
Let's dive in:
When it comes to acquisitions (big or small), investors care about the “why”, i.e., the strategic rationale. How does this move strengthen your company for the investors? With that in mind, here’s what you should cover in your earnings. Ideally, this fits on a single slide:
- Deal Highlights: If the purchase price is public, mention it. Highlight the acquisition’s impact on revenue and EBITDA, and share the expected closing timeline.
- Alignment with Strategy & Benefits: Explain how the acquisition aligns with your long-term strategy. Highlight key benefits, e.g., cross-selling opportunities, new markets, cost synergies, new IP. Show how this adds value for the shareholders.
- Acquired Company Overview: Provide a snapshot of the acquired company: key products, services, IP, and important stats (e.g., revenue, # employees, # patents)
- Integration Plan (Optional): Optional for smaller deals, but if your integration track record isn’t strong, present a clear plan for how this acquisition will be integrated.
Let’s bring this to life:
Check out this video where we walk you through how this B2B company effectively communicates routine M&A deals as part of their earnings.
To wrap up:
Even routine acquisitions deserve thoughtful presentation. Keep it clear, strategic, and focused on shareholder value. Strong communication now will serve you well in future M&A situations.
At OUTKREATE, we help you present your story with confidence—whether it’s a big acquisition or a smaller, routine deal. These moments matter, and we’re here to make sure they’re communicated clearly and effectively.
Curious about how to better highlight smaller acquisitions in your next Earnings Call? Let’s connect.
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