If we’ve said it once, we’ve said it a thousand times: “Time kills all deals.” Essentially the longer it takes an M&A transaction to reach the closing table, the more likely that deal is to fizzle and die a painful death.
A lot of it just comes down to human nature. At the start of a deal, people are invested and motivated. As the process drags on, tensions rise. Small issues are more likely to snowball into big issues.
What are some of the prime culprits slowing down a deal?
1. Advisors
- Inattentive, overburdened advisors and/or buyer’s advisors
2. Business Owners
- Dated business information
- Dated Financial Information
…It’s essential that everyone on your deal team sticks to a schedule and keeps the transaction moving forward.
Ideally, a business owner and their advisor will have gathered the most relevant due diligence information PRIOR to going to market. That way, buyers see an organized, committed team ready to move forward.