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Back to Inside Salesforce’s $100 Billion M&A Playbook | John Somorjai, with John Somorjai & Alex Immerman.

What Makes a Startup Worth Acquiring at Salesforce?

John Somorjai says a startup is worth acquiring when Salesforce's product teams cannot build the next three years of the roadmap with the people they have, and cannot easily hire the expertise. Hiring AI engineers is very hard, so the right acquisition can speed development when Salesforce can integrate it quickly.

A typical deal, from the first idea until the product is integrated, can take six to nine months. The comparison is whether the team could deliver the same thing on its own faster than that. When the right company shows up, he says the fit is obvious. The founders who demoed Listen Labs to Mark Benioff were brilliant, in his account. The technology was outstanding, and the interface was easy enough that his team had a survey out within 10 minutes with no enablement. Salesforce also surveyed Listen Labs customers, which he says was effective, and Salesforce uses the product itself as a diligence tool.

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Inside Salesforce’s $100 Billion M&A Playbook | John Somorjai ·

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More from this episode

  1. How Does Salesforce Decide Which Companies to Buy?John Somorjai says Salesforce follows an internal framework and stays pretty disciplined about following it. The framework looks at three elements.
  2. Why Is Salesforce Moving From Seats to Outcome-based Pricing?John Somorjai says the technology industry is moving toward outcome-based pricing, where a customer pays for resolutions instead of paying for a seat.
  3. How Do Acquisitions Put a Startup in Front of Salesforce's Sales Force?Alex Immerman says an acquisition can put a startup in front of Salesforce's 15,000 sales reps, and that in the case of Listen Labs a handful of those reps…
  4. Why Is Salesforce Ventures Investing in Robotics?John Somorjai says Salesforce Ventures is investing in robotics because dexterity and mobility are improving, and he expects a huge future for that industry.
  5. Why Does John Somorjai Say Many Venture Valuations Will Not Last?John Somorjai says many venture valuations will not last because they are way too high, the set of buyers is small, and the companies will not be able to grow…
  6. What Can Kill a Salesforce Deal?John Somorjai says security is the one function that can hold up the red flag and kill a deal.
  7. What Happened When a Salesforce Security Test Reached the CEO's Laptop?John Somorjai says one Salesforce penetration test reached all of a company's source code, got into the CEO's laptop, and pulled information about employees…

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