Why do deals fail?

Where do I begin? No starting point means no deal! In business acquisition, the motivation of the buyer must align with that of the seller. Successful deals are conducted at a reasonable price within a designated timeframe. We have seen deals fail due to unrealistic time and pricing expectations or personalities. A commercial deal expert will help you negotiate a favourable outcome.

To the buyers:

Be clear on what you are ready to pay, based on realistic performance and projected growth. Decide on the size of business you’d like to buy within a certain industry. What customers and capabilities would you like to gain when acquiring a business? The key is to resolve questions as soon as possible.  Prolonged timeframes kill deals.

To all sellers:

The right buyer for your business is most likely a competitor, customer, supplier, or investor.

Confirm your business proposition. Make sure the buyer knows what they are buying (leave no stone unturned). If not, you could attract the wrong buyer – a discount buyer or a “tyre-kicker”.

Make sure that you have a good business to sell or to invest in. A business not based on a historic position rather on a future growing one. Build in a growth strategy that the buyer can implement. This will impress the buyer.

Accept certain truths:

  • Buyers do not pay full price. They will pay market value prices.
  • The wrong buyer yields the wrong outcome.
  •  A sale is complete when the buyer deposits the final amount for the business.
  • Learn to let go of your business when it is time to sell it.
  • Understand that you are not an expert at conducting deals. Seek advice from a commercial deal expert.

Good luck with your deals.

About Us

Stylequity is a Growth and M&A Specialist. Our team identifies opportunities and turns them into profitable initiatives for select business owners. We build strong and sustainable businesses; prepare and execute business acquisitions; investments; divestments and sales. Using an incredible network of experts, we partner with owners of private businesses to fulfil their vision and surpass their objectives.

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