25 Years in M&A: The Hard Lessons You Won’t Hear Anywhere Else

25 Years in M&A: The Hard Lessons You Won’t Hear Anywhere Else

Marc Thibodeau, our Marketing Manager, sat down with Eric Cardinal, Vice-President at the M&A Club, who has spent over 25 years navigating the complex world of M&A.

Eric’s extensive experience provides a unique perspective on the industry, sharing valuable lessons and strategies that can help both business owners and advisors in their next move in the M&A space.


Why Usability in M&A Tools Is a Game Changer

One of the most striking things Eric noted when he first encountered Optionality was its ability to dramatically cut down on time-consuming tasks.

In M&A, speed is essential, and efficiency can often be the difference between success and failure.

“One of the things that really stood out to me about Optionality is how much time it saves. The tool can generate valuation data and market descriptions within minutes, which would normally take hours. This allows advisors to focus on higher-value tasks, like building relationships with clients and formulating strategies that drive deals forward.”

Eric’s point highlights the importance of leveraging technology in M&A.

As more tools like Optionality continue to emerge, the M&A process is becoming increasingly streamlined, offering advisors a competitive edge and ensuring they can move faster in today’s fast-paced market.


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👉 Watch the full interview here


Understanding the Two Main Types of Buyers: Strategic vs. Financial

 

Selling a business requires an in-depth understanding of the different types of buyers in the market. Eric shared his thoughts on the two primary categories of buyers: strategic and financial. 

“Strategic buyers often pay a premium because there’s synergy in combining the businesses. For example, a company that acquires a competitor or a business that complements their current offerings is willing to pay more because they see how the acquisition will benefit their overall business strategy.”

On the other hand, financial buyers, including private equity firms, family offices, and search funds, are also becoming more competitive.

“Financial buyers are often more willing to pay a higher price when they see a good opportunity. These buyers are driven by the potential for return on investment, and they’re always on the lookout for undervalued businesses that can be turned around or scaled.”

This differentiation between buyer types is critical when considering a sale.

A business owner must determine whether they want to sell to a buyer who values synergy or a buyer motivated purely by financial return.

Knowing which buyer category best suits their goals will help business owners position their company and set realistic expectations.


The Growing M&A Trend in North America

 Eric also provided a timely perspective on the current state of M&A activity in North America. He mentioned that not all businesses are entering the M&A space, and that many smaller businesses aren’t ready for sale.

“Smaller businesses often don’t meet the criteria for a sale. The market for businesses under a certain size is limited, and many entrepreneurs decide to hold on to their companies instead of selling. This is especially true for businesses that are still growing or lack the necessary infrastructure to attract larger buyers.” 

This insight highlights a crucial reality for many Quebec business owners: not every business is ready for sale.

Entrepreneurs must face the reality of their business's position and assess if a sale is the right move.

For those businesses that aren’t ready for M&A, it’s important to explore ways to increase value over time—whether through organic growth or improvements in infrastructure.


The Emotional Side of Selling (What You Need to Prepare)

 One of the most significant challenges in selling a business isn’t the financial aspect but the emotional toll it takes on the entrepreneur.

Eric shared that the transition from business owner to former owner can be difficult to navigate.

“When you sell your business, you no longer have a say in the direction the company will take. That can be a tough pill to swallow.” 

This emotional component is often underestimated by business owners, who may focus primarily on the financial implications of the sale.

However, for many, the emotional connection to the company they've built can be just as impactful as the deal's financials.

Entrepreneurs must be mentally prepared for the post-sale transition, which often involves letting go of the reigns and trusting that the new owners will carry the business forward.


The Continuous Evolution of The M&A Landscape

As Eric wrapped up our conversation, he emphasized the constantly evolving nature of the M&A landscape.

He stressed that while M&A deals may seem like an isolated event, they are often part of a larger, ongoing trend. 

“M&A is not just about one transaction. It’s about understanding the market and recognizing that the trends today are shaping the deals of tomorrow. The businesses that will be successful in the next decade are the ones that understand how to position themselves now.”

The market is constantly changing, and those in the M&A space must stay adaptable.

By keeping up with current trends and emerging technologies, business owners and advisors can position themselves to take advantage of future opportunities.


Want to Read More Exit Stories Like These?

 I share practical M&A tactics and personal stories from remarkable entrepreneurs, advisors, and deal-makers, focusing on the mistakes made and lessons learned when buying, selling, or building a business.

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Simon Leroux

Founder @ Optionality (backed by Inovia) - Gen AI Co-Pilot for M&A and Financing Advisors | 4x founder, 2x exits

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