Acquiring and integrating a business can be a great way to accelerate growth but can also hit many obstacles during execution. Following Veremark's recent first acquisition of two companies, Daniel will share some of the learning's and insight around what worked and what he would do differently next time whilst providing a roadmap of things to prepare for.

2. Hi, I’m Daniel Callaghan
Digital innovation and investment leader at the world’s
largest recruitment company
Founder of Workplace Accelerator with 15 portfolio
companies to date
Founder of two VC-backed HR tech organizations:
▪ Veremark: Global background screening company
▪ Talmix: Global freelance marketplace

3. Veremark was founded in 2020: We provide
background checks in more than 150+ markets
Reference
check
Identity
check
Global
sanctions
check
Credit
check
Employment
history
check
Civil
check

4. The rationale:
ANZ largest market in APAC
Comes with critical licences
Existing clientbase
Great valuation arbitrage
In 2023, we acquired Employrite
Australia and New Zealand

5. #1. Small deal ≠ less problems

6. ➔ Don’t rush to go public
➔ Expect surprises
➔ Expect delays
#2. You only know what you
bought after you bought it
Expect the best
Prepare for the worst
Capitalize on what comes

7. #3. People due diligence >
Financial due diligence
Numbers are relatively straight forward
Founders -1 are the relationships to check

8. #4. Beware the ‘double-sell’ bias
In these situations, both sides are selling to each other.
Lead with the head not the heart, and keep a clear view
of the facts of the agreement
● You’re selling to them
● They’re selling to you
● Once the deal is done their emotions
become your emotions to manage

9. #5. International M&A brings up complexities
● Approval for the acquisition might be needed
● Can you get access to your own bank account?
● Can you be a director?
● Does the country’s law lean more towards the
employee or the employer?

10. #6. Are your products
really the same?
● Same names but different client
expectations?
● Same price but different output?
● Same output but different delivery?

11. #7. Counter uncertainty with
constant communication
● Over-communication becomes vital
● Establish clear reporting lines early
● Establish weekly touchpoints
● Involve in the planning
● Get both sides together

12. #8. Planning is key for
client transition
● Get your house in order first
● Personalize the handover for the largest
● Digitize for the smallest
● Tell them again and again what is coming
● Love them like they were your own
(...because they are!)

13. #9. Carry out regular reviews
● Set up a dashboard for transition metrics
○ Headcount retention
○ Client retention: orders and volume
○ Onboarded clients
○ Clients ordering on new platform
● Revisit with team
○ Were expectations met?
○ Any questions unanswered?
○ Any uncertainty?

14. So far so good?
The path to success
Structured the deal properly
Aligned incentives to mutual outcomes
Timeboxed founder involvement
Bought for the right reasons

15. 50% of purchase
price already
identified in upsell
opportunities
4x increase in
purchase price
added to
valuation
Shortcut
accreditation
process by two
years
300+ new
clients to
grow
10. The metrics of success

16. Recommended… but not
without caution
● People make the deal
● Prepare for politics
● Structure to limit downside
● Understand the legals of the market
● Communicate, communicate, communicate