Bram Sugarman, Director of Corporate Development at Shopify, explains how Shopify integrates its M&A strategy with its internal product roadmap.
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“I spend the majority of my time working with our product team and understanding what that roadmap looks like for the next one, two, three, five, 10 years, and we have an opportunity to look at each area and find out which of those specifically can be great candidates for M&A to bring in great founders, great Teams and great products to really accelerate exactly what we're trying to build, which is empowering entrepreneurs through software.”
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More from Bram Sugarman
Insight
Acquired startup founders make the best long-term leaders post-acquisition
“We find that founders make the best long-term leaders within the company, and what we want to have is, is all founders who have opportunities and distinct paths to go down, an opportunity to join Shopify to become incredible leaders.”
Bram SugarmanOct 4, 2017▶ 10:1520VC: Key Questions Entrepreneurs Must Ask in M&A's, Why Acquihires Come In 2 Different Categories & Why M&A Is Lumpy with Bram Sugarman, Director of Corporate Development @ Shopify
Insight
Profitability is the best source of startup optionality
“Optionality can come in one of three favors. That could be a sustainable business that's highly profitable. That's the best way to build optionality. Second best way is by having great funders behind you who are willing to really take this to the long term. Th…”
Bram SugarmanOct 4, 2017▶ 13:0020VC: Key Questions Entrepreneurs Must Ask in M&A's, Why Acquihires Come In 2 Different Categories & Why M&A Is Lumpy with Bram Sugarman, Director of Corporate Development @ Shopify
Insight
Acquired employees should have a better job on day one post-acquisition
“We want the individuals on the company joining Shopify to have a better job day one than they did at their last day as an independent company”
Bram SugarmanOct 4, 2017▶ 13:3920VC: Key Questions Entrepreneurs Must Ask in M&A's, Why Acquihires Come In 2 Different Categories & Why M&A Is Lumpy with Bram Sugarman, Director of Corporate Development @ Shopify
Insight
Acquirers and targets must establish a shared vision before signing an LOI
“The first is making sure early on in the acquisition process, this is even pre-LOI or pre-execution phase, that there's a distinct shared vision between the two companies.”
Bram SugarmanOct 4, 2017▶ 14:3720VC: Key Questions Entrepreneurs Must Ask in M&A's, Why Acquihires Come In 2 Different Categories & Why M&A Is Lumpy with Bram Sugarman, Director of Corporate Development @ Shopify
Disclosure
Shopify acquired Oberlo based on merchant product-sourcing data and cultural fit
“The most recent acquisition is a company called Oberlo that does product sourcing, and so the reasons we said yes were, number one, data. We're a heavily data-driven company, and we understand that one of the biggest challenges for our merchants and their path…”
Bram SugarmanOct 4, 2017▶ 22:1820VC: Key Questions Entrepreneurs Must Ask in M&A's, Why Acquihires Come In 2 Different Categories & Why M&A Is Lumpy with Bram Sugarman, Director of Corporate Development @ Shopify
AssertionNot checkable as stated
Shopify's M&A approval process mirrors VC investment committees
“Having come from the VC background, so it's structured in a very similar way. We have an individual who I work with who would sort of be the partner on the transaction, really pushing and championing what we call a champion of the deal, pushing it through the …”
Bram SugarmanOct 4, 2017▶ 8:2320VC: Key Questions Entrepreneurs Must Ask in M&A's, Why Acquihires Come In 2 Different Categories & Why M&A Is Lumpy with Bram Sugarman, Director of Corporate Development @ Shopify
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