The Transaction Process is Complex and Fraught with Risks
Many M&A and financing deals fail. Investing much time and energy and risking business disruption to engage with a potential acquirer or investor – and to have it derailed prior to closing – is a significant setback.
Business owners tend to focus primarily on negotiating the “headline” business valuation. Many receive good tax advice and are also aware of the net proceeds they can expect from a sale transaction. However, the myriad impacts of apparently non-financial or technical deal terms is often underestimated. A seller can negotiate away much of their headline valuation by accepting “out of market” terms. Unforeseen disagreements regarding the unspoken technical aspects of the definitive agreements also increase the risk of an otherwise reasonable business deal failing to close.
Often, it is the less technical or “soft” issues that derail an otherwise sensible deal: disagreement between stakeholders, communication breakdown between seller and buyer, or an unexplained surprise in due diligence. Expectations need to be managed and human sensitivities buffered for many transactions to close.
Because of the unpredictable nature of these potential obstacles, it is helpful to have an expert who has seen hundreds of transactions, has experienced many obstacles within negotiations, and who can respond swiftly to restore harmony to the transaction process. Having the foresight to predict and resolve issues before they present themselves is an invaluable skill. This can inevitably make the difference between success and failure. Led by professionals who have been encountering and resolving these issues for the past twenty years, Valitas delivers the process expertise, empathy and tact necessary for successful execution.