The Man Behind Most Gaming Deals

Successful gaming deals rely on years of trust building.

Affan Butt emphasizes that trust and rapport are established well before a formal sale process begins. This long-term cultivation defines the industry's M&A landscape.

Trust first. Successful deals are often the result of years of cultivation.

Geopolitical constraints and consolidation have shrunk the acquirer pool.

Many former major buyers have been acquired themselves. The remaining pool consists of large public strategics, private strategics, and private equity firms.

Fewer buyers. The gaming M&A landscape has consolidated significantly, leaving a limited pool of acquirers.

Aggressive bidding wars can damage a founder's reputation.

In a tight-knit industry, public bidding wars can backfire and erode trust with potential buyers. Founders are cautioned against viewing inbound interest as automatic validation.

Inconsistent performance projections during due diligence can collapse deals.

Maintaining transparency and avoiding sudden shifts in performance projections are critical to preventing deal collapse.

Poorly structured earnouts can become traps for founders.

Earnouts frequently fail when founders lose control over variables like launch costs or engine changes. EBITDA-based targets in final years can discourage investment in new title launches.

Alignment risk. Earnout structures often fail due to poor alignment, such as EBITDA-based targets in final years.

The most significant risk for founders is a missed opportunity.

A proactive approach to understanding the evolving buyer landscape is necessary. This landscape now includes sovereign wealth funds, private equity, and specialized strategic investors.

Proactive approach. The most significant risk for founders is not a failed deal, but a missed opportunity.

Founders are often unprepared for the boring legal aspects of M&A.

Escrows, indemnities, and liability caps are typically negotiated during periods of maximum exhaustion. Founders must be prepared for these technical aspects.