Saurabh Rajwade’s Guide to Mergers and Acquisitions in the Modern World

The world of mergers and acquisitions and the associated risk assessment that precedes either is generally unknown to the public. The bits and pieces that make it to the daily news tend to be summaries, bottom-lines condensed to who purchased whom, and for how much. This summer in particular, we’ve been witnesses to multiple major deals, especially in the entertainment industry. We had AT&T’s acquisition of Time Warner for $85.4 billion, as well as Disney’s purchase of Fox for $71.3 billion.

But this simplified reporting leaves hidden the extensive intricacies of the work that takes place long before a deal is reached. Truthfully, only a select group of individuals actually knows what goes into shaping a price point of an acquisition or merger, what goes into researching the tangible value of a specific company or multinational corporation. Saurabh Rajwade is among this small group of individuals. He delights in the nuts and bolts of this business, and his work includes research into EU emissions management, projects with Deloitte consulting, Volvo Powertrain, as well as many other assignments we can’t mention here due to confidentiality agreements with these well-known brands. Suffice it to say that Mr. Rajwade has secured a space for himself among the top operators in his field.

Rajwade spoke to us about what the field of mergers and acquisitions looks like nowadays, in this rapidly-evolving environment where nearly every company is constantly looking to eat or be eaten.

Let’s start with a deeper dive into what risk assessment actually involves. When asked about the subject myself, I usually point to episode 14 of season 6 of The Office, titled “The Banker.” It’s the one where an investment banker visits the infamous Scranton branch of Dunder Mifflin to assess risk prior to Sabre’s purchase of the company. The gang then proceeds to elaborately lie about their lack of inappropriate and dangerous shenanigans over the past few years. The banker goes through different categories of risk: safety, sexual harassment, miscellaneous liabilities. Sure, it’s just a framework for a clip show recycling moments from old episodes, but these 22 minutes do in fact introduce the basics of the process, albeit while omitting many of the financial components.   

“Valuation is an integral part of M&A and you need to perform valuation analyses from multiple standpoints to advise the client on the fair value of the business. Each firm is unique and presents a set of valuation challenges. I use the standard valuation techniques recommended: discounted cash flow analysis, precedent transactions analysis, and public comparable analysis. Valuation is an art, with thorough analysis of financial metrics.”

These are the tools of the trade: hyper-detailed financial models that consider a staggering number of factors to predict the company’s future in terms of potential growth, revenues, changing costs, and many, many more. They’re somewhat similar to the risk models used by insurance companies to determine your monthly coverage payment. And all the information that these models spit out has to then be considered from a wide variety of perspectives. It’s like buying a car: you have to consider how it will perform and hold up in a huge number of hypothetical situations. How fast will the tires wear out? Will the paint job hold up in harsh weather? Would it be able to fit multiple children’s car seats, when the time comes? Will it maintain any significant resale value?

As Saurabh Rajwade confirms, it’s ultimately about the big picture, and different company executives have their own idea of what that should look like.  

“You have to use the right ‘currency’ while dealing with different stakeholders of the firm. Although profitability is the goal of any firm, different stakeholders in the firm seek different outcomes. A person focused on operations desires investments to improve production and enhance production capacity. A sales person will want to enhance marketing to generate more leads. As an advisor, you need to find a balance and look at the overall picture before making suggestions to the senior management.”  

Then we rolled around to talking about the more contemporary edge of the business, namely, applying M&G efforts to technology companies. The goal of many startups today is only to grow their client base to the point where the company will appear to be a viable acquisition for one of the top dogs: Google (Alphabet), Facebook, Apple, et al. And since these monster tech companies have their hands in such a huge range of industries and interests, viable acquisitions could be found in any sector.

“I think technology is the most dynamic industry and it impacts everything you do in life, whether it’s entertainment, travel, communications, almost everything. Working in technology-industry M&A exposes you to early-stage startups to mature technology businesses. You can see and understand how investors look at and value the companies at different stages. You also get to see how they’re in convergence in different industries and technology with deals such as Amazon buying Whole Foods or Walmart buying Jet.com.”

Assessing tech companies also requires a slightly different skill set because tech companies are, themselves, often non-traditional in their structure, business model, and even earnings.

“Valuing a tech company I think is more challenging as the transactions many times involve companies with negative net income. Also within technology, the valuation metrics can be very specific such as value per active users, value based on subscription or recurring revenue, etc., which is not the case in more traditional industries. Also technology is impacting all the industry sectors and thus there is constant growth in the sector with new entrants and new technology entering the market.”

Rajwade has been able to handle these nuances with skill, adapting to a slew of unique industries. And not only that, but the work has taken him across the globe. And of course each country has its own business etiquette. The human element is extremely important as well, says Rajwade.

“Working in different countries poses its own challenges such as adjusting to the culture, getting comfortable with topics of small talk. I have always found that meeting people outside the work environment helps you to connect and make the transition easy.”

It doesn’t come easily, this ability to change to match every situation. It’s hard earned, and Rajwade can testify to that.

“Aside from the technical skills, an individual needs to have the right attitude to learn while working long hours. Ability to tell the story through a presentation and numbers that address the client concern is important as a senior banker.”

It’s difficult work, but Saurabh Rajwade clearly loves every bit of it. It’s hard to disregard that kind of passion. And in the midst of an acquisition fever that spans entire industries, entire economies, mergers and acquisitions technicians continue to be critical for the success of any serious company.

Nine Common Signs You Will Be Laid Off in the Near Future
How to Inspire Others in the Workplace on a Daily Basis
Seven Helpful Examples of Professionalism in the Workplace
Overhearing Someone Talking About You at Work: What to Do
Staying Positive at Work in Tough Times: A Basic Guide
Helpful Car Driving Tips for Beginners in the USA and Beyond
What to Look for When Renting an Apartment Checklist
Interview: Culinary Pros Talk Food, Work, and Passion
Tips for Working Full-Time and Running a Small Business
Top Business Books of All Time that You Should Read ASAP
How to Apologize to a Friend for Being Rude (and Mean It)
Negotiating Used Car Price Over Email: Getting the Best Deal
What Equipment Do You Need to Start a Podcast? - A Guide
"I Can’t Get Out of Bed in the Morning" - Possible Solutions
The Best Hybrid Bike for Beginners: An Introductory Guide
Eight Fun Games to Motivate Employees in the Workplace
What Makes Employees Feel Valued? - An Exploration
Seven Great Ways to Improve Efficiency in the Workplace
How to Research a Neighborhood Before You Buy - Helpful Tips
Nine Great Low-Stress Jobs for Homebodies and Freelancers
8 Cheap Ways to Make Your Small Business Look Professional
Interview: Denny Sila on Raising a Jazz Piano Prodigy
How to Be Fashionable on a Low Budget: Tips and Advice
Reconnecting with Old Friends Advice - Suggestions to Try
How to Ask for a Donation in an Email: Suggestions to Try
"I Prefer to Be Alone Most of the Time" - The Pros and Cons
How to Be an Active Member of the Community: Tips to Try
"My New Job is Not What I Expected" - What to Do Next
How to Stay Calm When Angry at Work: Suggestions to Try
How to Stop Arguing with Someone: Five Suggestions to Try
The Importance of Public Speaking in Everyday Life
Technicals Skills of an Entrepreneur: Essential Knowledge
The Importance of Art and Culture in Our Life: A Guide
List of Social Activities for Adults: Fun Ideas to Try Today
How to Find a Hobby or Passion: Guidelines and Suggestions
Not Hearing Back from Jobs? - Here's What to Try Next
Quitting a Job Without a Notice Letter: The Pros and Cons
How to Apologize to a Customer for a Mistake: Tips to Try
Why is it Important to Love Your Job? - An Exploration
The Many Benefits of Home Cooked Meals Vs. Fast Food
How to Get into Running When Overweight: A Concise Guide
Depressed About Being Single For So Long? - The Bright Side
The Side Effects of Working Too Much: What to Watch For
9 Jobs That Require Travel and Pay Well - Ideas and Tips
Cheap Healthy Meal Plan Shopping List: Suggestions to Try
Funny Ways to Answer the Phone to Telemarketers: Tips to Try
What Makes a Good Sales Associate? - Tips for Your Success
How to Apologize Professionally in an Email: Tips to Try
Ideas to Make the Workplace Better: Several Suggestions
Workplace Fun Friday Ideas to Increase Employee Motivation
The Basics of Workplace Etiquette: An Introductory Guide
Creative Ways to Give Advice: Ideas and Suggestions to Try
11 Jobs for Laid Back Personalities: Ideas and Suggestions
How to Deal with a Demanding Boss: Tips and Tricks
My Coworkers Are Jealous of Me: Ideas for What to Do Next
Career Path Planning for Employees: Guiding Principles
Starting a Side Business While Employed: Tips and Tricks
Business Ideas for Students in University: Seven Suggestions
Careers for Introverts in Healthcare: Ideas and Suggestions
What Qualities Make a Company a Great Place to Work?
Books for Guys Who Don’t Like to Read - The Idea Trader
Do Kittens Sleep Through the Night? - The Idea Trader
Can I Become a Graphic Designer Without a Degree?
Best Books for Aspiring Entrepreneurs - The Idea Trader
Gregory Finkelson Devises Brilliant Plan To End Shutdown
UK’s Brexit Troubles Urge Caution to Other EU Nations
Estimates of Children Separated at Border Higher Than Before
How to Calm Down A Kitten When Hyper: Tips and Tricks
How to Make Work Fun for Employees: An Idea Trader Guide
How to Improve My Attendance at Work: An Idea Trader Guide
How to Deal With Neighbors Who Are Bullies: Tips and Tricks
Fun Things To Bring On A Cruise: An Idea Trader Travel Guide
How to Live Well on a Small Income: Helpful Tips and Tricks
Best Way To Clean Walls When Moving Out: Tips and Tricks
What Does Business Casual Mean For a Man? - Ideas and Tips
9 Powerful Ways to Boost Employee Efficiency in the Office
How To Stop Procrastination In The Workplace
Tools to Stay Organized at Work
Home Remedies to Fall Asleep Quickly
Weekly Update, 12/16/18
Weekly Update, 12/9/18
The Plan Behind the Packaging: Leading Designers Moree Wu and Sijia Zhang Give a Pre-Holiday Crash Course on the Importance of Design
Weekly Update, 11/18/18
One Big Three-Legged Race: App Designer Yunning Liu on the Undying Relationship Between Technology and Design
Weekly Update, 11/11/18
Weekly Update, 11/4/18
Weekly Update, 10/28/18
Weekly Update, 10/21/18
Bassist Ole Kirkeng on the Ins and Outs of Being a Musician in 2018
Weekly Update, 10/7/18
Weekly Update, 9/30/18
Weekly Update, 9/16/18
Interview With Grocery Delivery Mogul, Tejas Viswanath
Software Whiz Ahmed Ilyas On What It Feels Like To Be At The Center Of The Tech World
Weekly Update, 9/9/18
Weekly Update, 9/2/18
Weekly Update, 8/26/18
Saurabh Rajwade’s Guide to Mergers and Acquisitions in the Modern World
Australia Places Ban on Plastic Bags
The Future of Carbon-Neutral Cars
UN Report on US Poverty Puts the Blame on Politics
The Cost of Elon Musk's Vision for Transportation
Anthony Bourdain: a Legacy of Food, Culture, and Travel
Psychedelic Drugs and their Effects on Depression Discovered
Spotlight in Screenwriting: an Interview with Karolyn Carnie
'Ye' and the Conflict of Artistry
Gender and the Millennial Issue with Impostor Syndrome
Behind the Big Screen: an Interview with Gemma Karlsen
Study Links Body Clock to Certain Mental Illnesses
UK Facial Recognition Wrongly Identifies Criminals
World’s Largest Cruise Ship is a Floating Mega-Resort
3-D Printing Startup has Eye on the Sky
Tesla Model 3 Becomes America’s Best-Selling Electric Car
Impossible Foods Leads the Way on Meatless Substitutes
Your Smart Device Might Be Listening
Cobalt Robotics Receives Funding for Robot Security Guard
Intel Feels the Hurt as Apple Plans to Use Its Own Chips
Uber Suspends Self-Driving Car Tests after Fatal Crash
Chaos By Trump: Stocks Display The New Fragrance
Worst week ever? Tech takes a bow, not in a good way
A Mexico Mystery: What Happened to the Sharps?
Did Sister Jean Not Believe in Divine Providence?
Will This Be The New World War or Cold War?
Iran Continues to Mount Tensions Against the U.S.
He Was Born In A Small Town… And Performs There, Too
This Singer Happens In Vegas, But Doesn’t Always Stay
Moving Through Jell-O Pudding: Cliff Huxtable’s Troubles
If Only #Monet Had A Hashtag …
Terms and ConditionsPrivacy Policy
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram