How Salesforce.com pulled mergers and acquisitions out of the park

July 21, Salesforce.com (NYSE: CRM) has finally finalized its acquisition of Slack, which investors have been waiting for since last December. As important as this deal has been and continues to be for the tech company, several other past acquisitions have seen strong growth (and beyond) for Salesforce, as detailed in its recent Investor Day presentation.

In this episode of “Beat & Raise” on Motley Fool Live, recorded on September 27, Fool.com contributors Clay Bruning and Brian Withers, and Millionacres editor-in-chief Deidre Woollard discuss how the company got the most out of its M&A strategy.

Clay burnishing: Then that’s another thing that specifically on our show the other week, we talked about how the onboarding and execution risk on this huge Slack deal was a cause for concern or a cause for. pause to take a step back and think they’ve added 1,000 so far in terms of integrating past M&A. Can they continue? I think they just pulled this slide out of the park here so you can see on the left side you have the name of the public acquisition they had, how much they paid, what was the multiple they paid, then right, on those white ovals, if you will, then they show what they’re running right now, what that multiple is now, how much they’re growing, etc. It just reinforces the incredible strategic merger and acquisition they’ve had and their success’ I’ve had and it gives me even more confidence seeing some of this, I wasn’t aware of all of these offers. I just started researching Salesforce about a year ago. But, man, it’s amazing and how they actually accelerated the growth of almost every one of these companies years after the fact. I expect the same and they already have it [inaudible] the sales and turnover team is accelerating [inaudible] so just amazing execution, amazing leadership, and amazing management across the board here for sure.

Brian Withers: It is a manual of mergers and acquisitions. This is the right way to go.

Deidre Woollard: Speaking of which, I’m sorry, go ahead.

Clay burnishing: No, go ahead.

Deidre Woollard: I was going to say that one of the things they talked about that I found interesting was that they were asking Amy Weaver if Slack was the end. Looks like they don’t feel like they are planning any major acquisitions in the immediate future.

Clay burnishing: As a person [inaudible] the company is really obvious because I think they have their hands full with Slack. I think they have so many different avenues where they can grow and increase innovation and they’ve talked a lot about the roadmap and how all of these things they want to achieve and they’re starting to roll out some of it. like music videos and caucuses that are increasingly trying to reduce the need for all members of a team to be in meetings. Whether it’s a different time zone, a different country, or you just don’t have time to jump on that 30-minute meeting. Digital HQ is definitely one of those trends that I have seen more and more important. They actually said that the digital HQ is more important than the physical HQ internally at Salesforce, so really interesting to see how Slack continues to innovate here and I’m sure Salesforce is going to be able to accelerate some of that innovation to help. drive Slack’s incremental growth.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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