Hue Partners is proud to share the Spring M&A Confidential article in collaboration with Ian Wenik of Citywire RIA.
M&A press coverage has become a regular fixture in our industry’s news cycle. These announcements are far more than just pieces of paperwork; they are victory laps that can significantly impact a firm's ability to attract talent, clients, and future partners. After years of being bombarded with daily deal headlines, we sat down with Ian Wenik of Citywire to understand what makes some M&A transactions newsworthy while others fade into the background noise. Here are three key lessons for founders looking to make the most of their M&A announcements.
Journalists are constantly on the hunt for scoops, especially when it comes to ongoing M&A deals. For instance, high - profile transactions like Goldman's PFM sale to Creative Planning or Focus Financial Partners’ private-equity led take private, have captured the media's attention. These stories not only provide valuable insights into the market but also generate a significant amount of buzz.
For founders, the timing of media engagement is crucial. Engaging with the media before the deal closes can create anticipation and build momentum. However, it's important to be strategic. Premature announcements can lead to unwanted speculation or even derail the deal. Founders should carefully consider the stage of the transaction, the potential impact on stakeholders, and the overall market conditions.
By reaching out to journalists at the right time, founders can ensure that their story is told in a way that maximizes its impact. This could involve sharing exclusive details, providing context, or highlighting the strategic significance of the deal. For example, if a founder can reveal how the acquisition will expand the firm's service offerings or enter new markets, it will make the story more appealing to the media and, by extension, to potential talent, clients, and partners.
In the past, a $100 million M&A deal was considered a major event and would often make headlines. However, as the RIA industry has grown and evolved, the bar for what constitutes a newsworthy deal has been raised. Larger transactions are now more likely to capture the media's attention.
But size isn't the only factor. A well-crafted story can make a deal stand out, regardless of its monetary value. Founders should look for unique angles to differentiate their M&A announcements. For example, first-time private equity (PE) backing can bring a fresh perspective and new resources to a firm, making it an attractive story for the media. Similarly, founder comebacks can add a human element to the deal, showing resilience and renewed leadership for the future.
Market-shifting consolidations are also highly newsworthy. When a deal has the potential to reshape the competitive landscape or create a new market leader, it will draw the attention of journalists and industry observers. Founders should be able to clearly articulate the strategic rationale behind the deal and how it will impact the industry as a whole.
Ian Wenik's team at Citywire gets its news from sources, not press releases. This highlights the importance of building strong relationships with journalists. Press releases are often seen as one-way communication, while relationships allow for a more in depth and personalized exchange of information.
Founders should start building journalist relationships early. By sending tips to tips@citywireusa.com, they can offer exclusive insights and position themselves as valuable sources of information. These relationships can lead to more favorable coverage and better-informed stories.
When a founder has a relationship with a journalist, they can have a say in how their story is presented. They can provide background information, clarify important details, and ensure that the key messages are accurately conveyed. Additionally, journalists are more likely to follow up on stories from trusted sources, which can lead to ongoing coverage and increased visibility for the firm.
M&A press is not just for show; it's a powerful tool for growth. A well-executed M&A announcement can attract top talent, who are often looking for stable and growing firms to join. It can also draw in new clients, who may be more confident in doing business with a firm that is making strategic moves in the market. And for future buyers, a positive media presence can increase the firm's industry footprint and make it a more attractive destination for talent.
Founders should treat their M&A announcements as the highlights they deserve to be. By understanding the importance of timing, crafting a compelling story, and building strong relationships with the media, they can ensure that their M&A deals receive the attention they need to drive the firm forward. In the competitive world of the RIA industry, a well-publicized M&A transaction can be the difference between success and obscurity.