Ecosystems Over Exit: Callum Laing on Disrupting Small Business M&A

Callum Laing, Founder of Veblen Director Program and a seasoned entrepreneur, delivered a thought-provoking keynote at the Emergence Singapore investment conference, challenging conventional wisdom around small business M&A, succession, and the power of interconnected ecosystems. While the broader tech landscape grapples with the rapid pace of AI, Laing’s focus remains firmly on the “traditional old economy small businesses” – a sector he contends is ripe for a structural overhaul.

Laing’s core thesis, honed over 25 years as an entrepreneur and through taking over 100 companies public via his firm, Unity Group, is that building a robust ecosystem around a core business can significantly amplify reach, deal flow, and capital raising capabilities. He candidly admitted that while their specific model is complex, the underlying principles of ecosystem creation are universally applicable to any entrepreneur or firm.

Unity Group operates as a boutique M&A and investment banking entity with a distinct product: taking privately held, cash-generating “boring businesses” public. Crucially, their targets are not founders seeking an immediate exit, but rather those looking for growth. These businesses reverse into a public shell, swapping private stock for public stock, thereby accessing the advantages of a publicly listed company while the original founder retains operational control. Laing notes that “at this point no cash is needed,” making it an attractive solution for growth-oriented small businesses.

This model is further underpinned by a MAS-regulated fund, First Degree Global Asset Management, which provides growth capital to these newly listed entities. The fund, structured as a five-year bond paying 15 per cent, generates a two-for-one return for Unity Group, locked up for the entire five-year period. This long-term alignment of interests, with all parties locked up for five years, addresses the common issue of post-listing stock dumping.

Laing highlighted a surprising finding from their extensive work: acquisition, rather than traditional internal promotion or external hires, proves to be the most effective succession planning strategy for small businesses. “It’s nearly impossible to convince an employee to think like an owner,” he asserted, suggesting that pairing an entrepreneur with another entrepreneurial business is a more successful formula.

The sheer volume of deal flow is critical to Unity Group’s ability to operate its unique model. Laing revealed they receive around a thousand inbound inquiries annually, a figure that has accelerated in recent months. This high volume enables a “take it or leave it” deal structure, significantly streamlining negotiations – a point Laing jokingly noted as a bonus for frustrating lawyers.

He attributed this extraordinary deal flow and the firm’s credibility to its interconnected ecosystem. This includes:

This integrated network allows Unity Group to approach investors with strong credibility and ease, overcoming the typical “slog” of capital raising.

Laing concluded by offering a three-step framework for any individual or business to build their own powerful ecosystem:

In essence, Laing’s address served as a powerful reminder that in an increasingly interconnected business world, strategic collaboration and the deliberate construction of an ecosystem can be the ultimate competitive advantage, particularly for those navigating the complexities of small business M&A and succession.