Jon Farnsworth, Spencer Fane

Partner, Spencer Fane

What are the biggest challenges you currently see in the M&A world?

High interest rates and stronger stock market returns have dampened overall M&A activity, but the core challenges to successful M&A deals remain consistent: 

• Aligning the cultures, values and missions of buyer/seller.
• Integrating workforces to ensure employees feel valued and motivated.
• Merging technology systems
• Clearly communicating and delivering value to customers to maintain loyalty.
• Building and sustaining trust among stakeholders. 

Sellers enhance deal outcomes by being transparent in their disclosures and addressing potential integration hurdles upfront. Enlisting experienced advisors who heed and implement the advice above is also essential for success.

Without revealing the names of a client, what is the most interesting transaction you’ve worked on lately?

The most interesting transaction I have recently worked on involved the sale of a mid-sized technology company to a private equity group. The seller had a strong business and benefit of literally dozens of interested buyers, but this was complicated by highly divergent opinions from the executive team. 

The transaction presented multiple challenges, including ever-strengthening financials that put upward pressure on the sale price, motivating and maintaining executives (and limiting their in-fighting), identifying and transferring intangible assets, negotiating and drafting multiple sets of new governing documents, and aligning financial incentives among seller, executives and the buyer.

How do you manage work/life balance?

I live by the mantra: “Help good people do good things.” I am intrinsically motivated to help others, and working hard “fills my cup”. I also ensure that I take the necessary time to take care of myself, including playing tennis and hockey, spending time with my family and friends, going camping, fishing, and hunting, and traveling.

What is one thing you would change about Minnesota if you could?

Minnesota should be more business friendly than it is. In particular, Minnesota’s unnecessarily high tax structure disincentivizes businesses from expanding their operations, and instead, provides an incentive to locate some — or all — of their business operations outside of the state.

What’s something most people don’t know about you?

Many people don’t know that in addition to being an equity partner at AmLaw 200 firm (Spencer Fane), I hold an MBA and have run multiple businesses, which shapes the way I approach my practice.