M&A Playbook: How Global Savings Group Acquires Companies for Their Buy & Build Strategy

About this episode

Global Savings Group (GSG) is a prime example of successful growth through acquisitions. With revenues exceeding 100 million euros (as of 2021) and several hundred million euros invested in company acquisitions, this Rocket Internet-era company demonstrates what a well-thought-out M&A strategy looks like.

From Rocket Internet Era to M&A Champion

Founder and CEO Gerhard Trautmann has developed Global Savings Group into one of the most successful startups of his generation. Through strategic acquisitions of well-known brands like MyDealz, Shoop, and iGraal, the company achieved tremendous growth. Despite these impressive successes, GSG has remained surprisingly under the radar – a phenomenon that Trautmann himself reflects upon.

Understanding the Buy & Build Strategy

Why does Global Savings Group rely on Buy & Build instead of organic growth? Trautmann explains the strategic considerations behind this decision and how the company strengthened its market position through targeted acquisitions. The strategy goes far beyond simply buying companies – it's about systematically building an ecosystem.

The M&A Process: From Evaluation to Integration

Company Evaluation and Timing

A successful company acquisition starts with proper evaluation. Trautmann shares his principles for company building and explains how to determine the optimal timing for acquisitions. This involves not only financial metrics but also strategic considerations regarding market position.

Financing the First M&A Transaction

One of the biggest hurdles for companies is financing their first acquisition. How does a growing company approach this challenge? Trautmann provides practical insights into various financing options and their pros and cons.

Due Diligence and Red Flags

Every acquisition carries risks. Which red flags should entrepreneurs watch for during due diligence? Trautmann shares his experiences and explains which warning signs deserve particular attention. These insights can help other founders avoid costly mistakes.

The Human Side of M&A

Incentivization After Exit

What happens to founder teams after an acquisition? A critical success factor is properly incentivizing acquired teams. Trautmann explains how GSG ensures that the most valuable talent remains motivated even after the takeover.

Company Culture as a Success Factor

Despite all focus on numbers and strategies, one aspect cannot be neglected: company culture. How important is cultural fit in acquisitions, and how can different corporate cultures be successfully merged? These questions are often more decisive for long-term success than purely financial aspects.

Negotiation Tips and Pricing

Price negotiations are a central component of every acquisition. Trautmann provides concrete negotiation tips for other founders and explains how M&A processes differ from opportunistic conversations. These practical insights can make the difference between a successful and a failed transaction.

Lessons Learned: What Trautmann Would Do Differently Today

Experience is the best teacher – even in M&A. Trautmann reflects on the most important learnings from recent years and shares what he wishes he had known earlier. These insights are valuable for all entrepreneurs considering acquisitions themselves.

Conclusion: M&A as a Growth Lever

Global Savings Group impressively demonstrates how a well-thought-out M&A strategy can function as a growth lever. From initial evaluation to successful integration of new teams – Gerhard Trautmann's experiences offer a practical masterclass for all entrepreneurs considering acquisitions as a growth strategy.

For German startups, there are probably few better examples of a solid acquisition strategy. The insights from this conversation can help other founders successfully implement their own M&A ambitions.