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Top 2 Deal Killers in Due Diligence

Business Sales and M&A Specialists

Datasite’s recent research reveals that the most common 2 issues uncovered in due diligence that causes buyers to withdraw from a deal in due diligence are cybersecurity and data concerns (36%) and financial weaknesses (22%).

Business Sales and M&A Specialists

When asked how often a deal does not progress due to an issue uncovered in due diligence, dealmakers said about 1 in 10 deals fell through. Additional problematic areas most likely to kill a deal are excessive valuation, financial irregularities, and leadership issues.

Talk to your technology advisors about data security issues and consider securing an external audit from a third-party firm (ask your CPA for a referral) to ensure your information management practices are up to snuff.