Every business owner dreams of the merger or takeover they’re involved in being completed seamlessly.
More often than not, it turns out to be a pipe-dream. These processes are too lengthy, expensive, and complicated to go off without a hitch.
Nevertheless, there are many avoidable situations which seem to delay or completely ruin M&A activity time and again.
By being aware of these scenarios and how to deal with them, business owners can increase the odds of completing their merger or acquisition without delay.
The mistakes that slow down mergers and acquisitions
With so many useful tools available to assist the process of mergers and acquisitions, it might be surprising to hear that the majority of them are delayed.
A common cause of this is the failure to ask important questions that should have been clarified before the serious negotiations started.
Issues, such as the repositioning of senior staff or an ongoing role for the departing owner, can ruin mergers altogether, yet are often left until late in negotiations.
What’s more, the pressure to close the deal quickly can often leave business owners with rose-tinted glasses that hide an obvious deal-breaker that should have been spotted early on.
Disagreements over smaller issues, such as the repositioning of staff, are likely to cause several delays throughout the process. Many people underestimate the fantastic role that a third-party integrator or M&A software can play in speeding up compromises here.
Don’t complete deals that don’t fit well
The success and speed of a merger or acquisition is highly dependent on the identities of the two company owners trying to complete the deal.
It’s helpful for them both to have experience with successfully completing M&A activity before, and essential for both parties to be on the same wavelength as far as their future goals for the company.
While it’s beneficial to avoid the classic scenarios that delay mergers and acquisitions, it’s even more important to avoid completing deals that aren’t the right fit for either party.
Often business owners get so caught up in the excitement of the deal, or are so determined to complete it quickly, that they fail to see the flaws that will destroy chances of the deal being profitable.
Don’t be that business owner. By taking the time to do proper due diligence of your M&A opportunity, you actually increase the chances of the right decision being made quickly, whether that’s completing the deal of walking away from it.
Succession Link provides an online platform that makes it simple for business owners in the financial service industry to find the right deal to improve their business. Through our database including thousands of business owners looking to buy or sell, you can contact as many as you like and communicate with ease, plus we won’t charge any fees for deals completed between our members.
Click the link to find out more about how Succession Link can help you find your perfect partner for M&A activity.