Why do deals fail?

Expert Knowledge BaseWhy do deals fail?
EA SupportEA Support Staff asked 4 years ago
1 Answers
David ButlerDavid Butler Staff answered 3 years ago

Even with a great valuation and with the willing buyer, sometimes company decides to look further for another bidder. But then as the time goes by, the buyer walks away and another one may not show up as yet.
Surprises are always a bad thing. Skeletons in the closet such as a non registered IP attracting a patent infringement lawsuit will seriously impact the value and the expected price. Inconsistencies in the shareholders structure
Post-integration phase should be discussed early. Often deals break on difference in the vision and expectations post-acquisition and it is less costly to be aware of that early. More than half of all M&A fail after the transaction so it is key to align expectations and prepare to dance a long waltz together.