If you’ve ever wondered what it takes to break into the world of mergers and acquisitions (M&A) or how to successfully sell a business you’ve poured your life into, you’re not alone. M&A can feel like a high stakes chess match: strategy, psychology, timing, and execution all matter.
In a recent episode of the Capital Gains Tax Solutions Podcast featuring Kison Patel, founder of DealRoom and host of the M&A Science podcast, we got an inside look at what really drives success in the M&A industry.
Let’s unpack the key insights, especially if you’re considering a career in M&A or preparing your company for a future exit.
From Failure to Founder: An Unconventional M&A Career Path
Kison Patel’s entry into M&A wasn’t traditional. After failing out of undergrad and starting from the bottom in the workforce, he eventually found his way into a boutique M&A advisory firm. From there, he launched his own advisory practice, worked in hospitality and financial institutions, and later founded DealRoom, a project management software built specifically for M&A transactions.
What’s powerful about this story is that M&A isn’t reserved for Ivy League bankers. It’s a discipline built on pattern recognition, execution, and continuous learning. Patel credits his success to three principles:
- Discipline
- Continuous learning
- Empathy
That last one, empathy, might surprise you. But in M&A, understanding what motivates the other side can be more powerful than any spreadsheet.
What Careers in M&A Really Look Like
When people think of M&A jobs, they often picture investment bankers running fast paced auctions. And yes, that’s one path. But the industry is broader than that.
Career opportunities in M&A include:
- Investment banking advisory
- Corporate development roles inside large companies
- Private equity deal teams
- Due diligence specialists
- Integration managers
- M&A focused technology platforms like DealRoom
Patel’s company works primarily with large corporations, typically $1B+ market cap, that complete three or more acquisitions per year.
These companies need help across the entire acquisition lifecycle, from sourcing and diligence to integration.
And here’s the truth: integration is where value is either created or destroyed. You can win the deal and still lose the war if you botch post close execution.
Selling a Business? Strategy Comes First
One of the most important takeaways from the conversation is that many founders rush into selling without clarity.
The first step in any M&A transaction isn’t valuation. It’s a strategy.
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- Ask yourself:
- Why am I selling?
- What do I want my company to become after I exit?
- What happens to my team?
- Am I emotionally ready to watch this business evolve under new ownership?
Some founders regret selling because they didn’t think through what would happen to their “baby” after closing.
In auction processes especially, speed can come at the expense of alignment.
There are two main sale paths:
- Auction process: Fast, competitive, multiple bidders.
- Proprietary deal: Targeted relationship with one strategic buyer.
Auction processes can maximize price, but proprietary deals often create stronger long term fit. It’s like speed dating versus a six month courtship.
The Role of Due Diligence: Why Clean Books Matter
If you’re building a business today, even if you don’t plan to sell tomorrow, you should operate as if you will.
Buyers will examine:
- Financial statements
- Revenue allocation
- Customer contracts
- Operational systems
- Leadership depth
If your house isn’t clean, buyers get suspicious. And suspicion lowers valuation.
Patel compares it to selling a home: if a buyer spots mold on the ceiling, confidence drops instantly.
The same happens in M&A. Even small inconsistencies can trigger retrading, where the buyer renegotiates price after findings in diligence.
Capital Gains and Exit Planning
One critical but often overlooked part of an M&A exit is tax planning.
When founders sell, they may face significant capital gains tax. Strategic planning early in the process is key. Waiting until a letter of intent is signed is often too late to structure efficiently.
The episode discusses approaches like relocation to lower tax states and trust based strategies to help manage capital gains exposure.
The common theme? Plan early.
An exit is often a once in a lifetime liquidity event. It deserves long term planning, not last minute scrambling.
The Psychology of M&A: Your Hidden Advantage
Perhaps the most underrated lesson in the discussion is this:
M&A isn’t just financial modeling. It’s psychology.
Founders have emotional ties. Buyers have strategic pressures. Private equity firms have return timelines. Corporate acquirers have integration risks.
Patel emphasizes being “savagely curious,” asking deep questions and truly listening.
When you understand what drives the other party, you gain leverage that no Excel model can provide.
This insight applies whether:
- You’re pursuing a career in M&A
- You’re preparing to sell your company
- You’re building corporate development teams
Empathy isn’t soft. It’s strategic.
Final Thoughts: Build with the Exit in Mind
So should you always build your business as if you’re going to sell it?
There’s no universal rule, but operational discipline, clean financials, and scalable systems increase optionality. And optionality equals leverage.
Whether you’re exploring career opportunities in M&A or preparing for your own exit, remember:
- Strategy before valuation
- Clean operations before diligence
- Alignment before closing
- Planning before tax impact
In M&A, deals don’t just happen. They’re engineered.
And when done right, they don’t just transfer ownership. They unlock the next stage of growth.