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Solomon Partners’ Head of M&A and COO of Investment Banking Jeff Jacobs joins M&A Director Chris Moynihan to discuss how the M&A process has evolved from a one-off event into a repeatable growth engine for acquirers. They break down the consistent drivers of deal success—clear strategy, holistic due diligence, and strong post-deal integration.
Jeff Jacobs (00:02):
Welcome to Solomon Partners Presents. This is our M&A monthly podcast where we discuss the latest trends driving M&A activity in the market. I’m Jeff Jacobs, head of M&A and COO of investment banking at Solomon Partners.
Chris Moynihan (00:15):
And I’m Chris Moynihan, a director in the M&A group. Today’s conversation is all about how the M&A process has become more sophisticated, and why that’s leading to better outcomes across all industries and how that’s growing. Professionalism is translating into better execution and better results for M&A bankers. So, Jeff, there was a time when M&A had a bit of a mixed reputation. You had some big successes, but also a fair number of transactions that fell short of expectations. How has the thinking around what makes a deal successful evolved over the years?
Jeff Jacobs (00:51):
Well, Chris, you’re right. In fact, Bain did a survey in 2004, called Mastering the Merger. And in that survey, what they found is that executives believed only about 40% of mergers were successful. Now, that doesn’t mean that deals were not creating value. Some absolutely were, but the issue was that outcomes were inconsistent and companies didn’t always have the right processes in place. What’s changed is experience from 2000 to 2010 frequent acquirers: companies that did at least one deal per year were shown to outperform non-acquirers; meaning, people who did no deals in shareholder returns. So, they outperformed in shareholder returns by more than 50%. And then, in the next decade, from 2010 to 2020, again, this Bain study showed that that outperformance jumped to nearly a hundred percent, almost twofold from what they had done in the previous decade. Doing more deals definitely builds that muscle, especially when they’re aligned to a defined strategy and executed with discipline. And those companies acquiring five or more targets, those so-called serial acquirers, they saw an additional boost to shareholder returns.
Chris Moynihan (02:04):
That’s a big shift, seeing better shareholder returns for companies that are serial acquirers versus those that just do one-off periodic dealmaking. And it sounds like what’s driving that really is their goals and what they’re trying to achieve through M&A. Can you talk a little bit about how the objectives have shifted in those specific deals with those types of acquirers?
Jeff Jacobs (02:26):
Well, I think a couple decades ago, most M&A was about cost synergies and consolidation. It was very focused on building scale, very focused on improving efficiencies. Today, we’re seeing M&A used more strategically as a way to grow, as a way to diversify, as a way to accelerate transformation of the businesses that are being put together. That can mean buying a capability. It can mean entering a new market or accessing a new customer segment. So, the center of gravity has moved from defense to offense, and that’s really broadened the definition of what a good deal looks like. And it’s certainly opened the door for more types of companies to use M&A as a tool for growth.
Chris Moynihan (03:09):
And from what we’re seeing in the data, it’s not just more deals, it’s actually better outcomes. So, what’s actually changed in the execution that’s driving these improved results?
Jeff Jacobs (03:19):
Well, for one, execution has become much more sophisticated. One of the biggest shifts has been in due diligence. Companies used to zero in on financials, which obviously are still critically important, but now what we’re seeing is top acquirers doing much more holistic diligence. They’re looking at cultural compatibility, operational fit, customer impact, talent retention. They’re mapping integration risk early, and they’ve largely moved away from higher-risk one-off deals. The new approach, the new model, is more repeatable: it’s more programmatic; and it’s far more deliberate. And I would say this more expansive view of diligence isn’t just a good process — it’s actually helped companies avoid costly mistakes. So, whether it’s cultural, structural, financial diligence, today is really about seeing the full picture and making smarter, safer calls.
Chris Moynihan (04:11):
For companies that want to build this kind of M&A capability, what should they be doing? What are the hallmarks of a company that consistently succeeds with deals? What are you saying to your clients?
Jeff Jacobs (04:24):
Well, it starts with strategy. The most effective acquirers have a clear corporate strategy that actively incorporates M&A as a growth lever. They’re constantly scanning for opportunities, whether that’s geographic expansion, supply-chain solutions, maybe AI capabilities. They also have a dedicated M&A team internally that manages the process from end to end. This isn’t just about hiring bankers, it’s about having those internal deal champions who can source, vet, and integrate deals. The other thing is investing in better diligence, not just checking the boxes but truly understanding how a company fits. And that includes cultural fit, it includes the synergy potential, the pre-integration planning, and then, very importantly, obviously post-closing integration. The most common point of failure isn’t closing itself. It’s what happens after the deal. And having a playbook, making those key day-one decisions and setting a clear integration model are all essential.
Chris Moynihan (05:27):
I think especially with the influence of sponsors as acquirers competing with corporates, they’ve really driven the corporates and market to treat M&A like a business function, not a side project; something you actually have to dedicate resources to be competitive, and when deals…
Jeff Jacobs (05:44):
Well, exactly. They don’t treat M&A as a one-time event. They treat it as part of how they grow; and because they built that foundation, they can move faster with more confidence and with more consistency.
Chris Moynihan (05:57):
Excellent. Well, Jeff, it’s been a really insightful discussion. It’s clear that the bar has been raised for M&A acquirers, sponsors, strategics, and the like. To our listeners, thanks for tuning in. Be sure to visit solomonpartners.com from more insights and takeaways from the M&A market. We hope you can join us next time.
