The Role of Marketing in M&A with Angelo Ponzi
Apr 30, 2025
In this episode of the DealQuest Podcast, I’m excited to welcome Angelo Ponzi, a fractional CMO and founder of Craft. Angelo specializes in strategic marketing, competitive research, and revenue planning, helping companies position themselves for sustainable growth. While marketing might not be the first thing that comes to mind when thinking about mergers and acquisitions, Angelo brings a unique perspective on how marketing plays a crucial role in M&A strategy.
With extensive experience in market research and brand positioning, Angelo helps businesses prepare for acquisitions—whether they’re looking to sell, merge, or scale for future deals. In this conversation, we dive into how companies can leverage marketing intelligence to strengthen their valuation, attract the right buyers, and navigate the competitive landscape. Let’s tune in!
CULTURAL FIT DETERMINES M&A SUCCESS
Mergers and acquisitions aren’t just about financials—they’re about people, culture, and customers. Angelo Ponzi shares how his agency initially thrived after being acquired by a billion-dollar firm, retaining its brand and independence. But when the larger company later decided to fully absorb his team, everything unraveled. Employees left, clients disengaged, and within months, the business collapsed.
This highlights a crucial lesson: cultural fit is just as important as financial metrics. If leadership fails to consider how employees and customers will respond to a merger, they risk losing the very value they sought to acquire. Simply assuming that a bigger, more established company will automatically create a stronger business can lead to costly mistakes.
DON'T OVERLOOK MARKETING DUE DILIGENCE IN M&A
Financial and legal due diligence are standard in mergers and acquisitions, but marketing often gets overlooked—despite its critical role in post-merger success. Companies assume that if they operate in the same industry, their marketing strategies will naturally align. However, failing to evaluate branding, messaging, and customer expectations can lead to major post-acquisition challenges.
Angelo shares an example where an acquiring company’s marketing approach completely clashed with the acquired company’s brand identity. The new messaging and strategy alienated loyal customers, resulting in lost revenue and a failed integration. This costly mistake could have been avoided with proper marketing due diligence.
STRONG SALES PIPELINES & CLEAR OWNERSHIP DRIVE GROWTH
A company with 15 stalled deals struggled because no department took ownership of client relationships—sales assumed ops handled it, ops pointed to customer service, and customer service thought it was sales. This lack of accountability led to missed revenue and raised red flags for potential buyers.
Without a structured process for managing client relationships, deals lose momentum, and revenue stalls. Businesses must establish clear handoffs and ongoing engagement strategies to keep clients moving through the pipeline. A well-managed sales process not only fuels growth but also makes a company more attractive for acquisition.
BUYERS PAY FOR PROVEN PERFORMANCE, NOT PROMISES
Many business owners overestimate their company’s value, assuming future growth will justify a higher price. One company aimed for a 37% sales increase despite an industry growth rate of just 7.6% and a personal track record of 6%. Their goal? To inflate numbers and attract a better valuation.
But buyers don’t pay for projections—they pay for proven results. That’s why earn-outs, where part of the sale price depends on hitting revenue targets, are common. Instead of banking on ambitious forecasts, owners should focus on building a solid, sustainable growth history to maximize their business’s true value.
BUILD YOUR BUSINESS LIKE YOU'LL SELL IT—EVEN IF YOU WON'T
Many owners spend decades growing their companies but never plan for a sale. Yet structuring a business for potential buyers makes it stronger and more resilient. Buyers don’t pay for legacy—they pay for recent performance. Ponzi shared an example of a 75-year-old company that assumed its history added value, but buyers only cared about the last three to five years.
Even if selling isn’t your goal, strong financials, a solid team, and efficient systems keep your business sustainable—and ready for anything.
BUYERS INVEST IN FUTURE POTENTIAL—NOT JUST PAST SUCCESS
A company’s history may open doors, but buyers are focused on its future. Angelo Ponzi shared his own acquisition experience—buyers weren’t just purchasing what he built; they expected him and his team to keep delivering results. That’s why many deals include earn-outs, requiring sellers to stay on for a set period.
If a business relies entirely on its owner, it’s far less attractive to buyers. Some of Ponzi’s clients left after his company was acquired, a common risk in service-based businesses. To maximize value, owners should:
- Build a strong team that operates independently
- Create repeatable systems for consistency
- Protect brand reputation to maintain trust
ACQUISITIONS AS A TALENT STRATEGY
Instead of relying solely on recruiters or job postings, some companies acquire businesses specifically to gain top talent. This approach can be particularly effective in industries where skilled employees are in high demand.
For example, if a company is struggling to hire for a new product line or market expansion, acquiring an existing business with an experienced team can be a more efficient and strategic move than hiring individuals one by one. However, cultural integration is critical—if the acquired employees don’t feel valued or aligned with the new company, they’re likely to leave, making the acquisition a costly mistake.
IGNORING CULTURE CAN KILL A DEAL POST-ACQUISITION
Angelo Ponzi shared a cautionary tale about a company he worked for that was acquired by a larger firm. The new owners were focused on the government side of the business and neglected the commercial division. Leadership failed to communicate a clear future for that division, and as a result, employees started quitting—including Ponzi himself.
Culture mismatches can quickly turn a promising acquisition into a disaster. If buyers don’t consider how teams work together, communicate, and operate, they risk losing the very talent and value they paid for. Instead of letting a division collapse, companies should explore options like spinning it off, selling it internally, or structuring the deal differently to avoid unnecessary losses.
DATA-DRIVEN DECISIONS FUEL GROWTH AND VALUATION
Many businesses waste resources by relying on assumptions instead of data. Ponzi shares an example where a company spent 40% of its marketing budget on two industry verticals that hadn’t generated revenue in five years. A smarter approach? Shift focus to profitable opportunities backed by real insights.
This applies to M&A too—buyers want evidence-based growth, not guesswork. Companies that use data to refine strategies, allocate resources wisely, and drive profitability will attract stronger valuations and long-term success.
ADAPTABILITY IS CRUCIAL FOR LONG-TERM SUCCESS
Businesses that resist change risk losing market share or even failing. Ponzi highlight how companies stuck in outdated strategies—like overspending on traditional media while digital marketing surged—struggle to compete.
AI is a prime example of disruption. Angelo shares how AI-powered chatbots now assist people with addiction before connecting them to human therapists. Companies that ignore innovations like this risk being left behind. Success comes from adaptability. Whether it’s AI, marketing shifts, or new business models, those who embrace change will thrive.
ADAPT OR BE ACQUIRED: HOW DISRUPTION SHAPES M&A
In today’s fast-changing world, businesses that resist innovation risk falling behind. Companies that embrace AI, shifting consumer trends, and new marketing strategies often become prime M&A targets.
For example, a larger company might acquire a smaller, agile firm for its cutting-edge AI solutions, gaining advanced automation and analytics. Meanwhile, businesses clinging to outdated methods may struggle, forcing them to sell out of necessity. Adaptation isn’t optional. Companies that don’t evolve may find themselves acquired—not as a strategic move, but as a survival necessity.
UNCERTAINTY STALLS GROWTH AND INVESTMENTS
Business leaders and investors thrive on stability. When economic or regulatory conditions are unpredictable, hesitation slows market activity. Entrepreneurs adapt well when the "rules of the game" are clear, but uncertainty—like tax changes or interest rate shifts—often leads to a cautious "wait and see" approach.
For example, many Baby Boomers are looking to sell their businesses before economic or political shifts impact valuations. However, market uncertainty makes buyers hesitant, slowing deals and lowering offers. Businesses should focus on what they can control—strong financials, clear strategies, and adaptability—to stay resilient in uncertain times.
Tune in to this episode to hear Angelo Ponzi share his insights on the critical role marketing plays in mergers and acquisitions, from due diligence to post-merger integration.
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Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
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