Why M&A Transactions Fail to Close
Back in November Gary Miller of SDR Ventures shared the "Top 10 Ways an M&A Transaction Can Go Wrong" on Axial.net. As the number micro-cap issuers growing through acquisitions continues to grow, it is good to keep the reasons why transactions fail to close in mind.
The top 10 reasons why transactions fail to close are 1. Unrealistic Value Expectations, 2. Unclear Story Elements, 3. Quality of Earnings, 4. Length of Time, 5. Material Changes, 6. Customer/Vendor Concentration, 7. Renegotiating Terms of the Deal, 8. Lack of Robust Internal Controls, 9. Reaching for the Last Dollar, 10. Inadequate Advisors.
Some stats say as much as 80% of M&A transactions fail to close. Next time you are working on an M&A transaction, keep these 10 reasons in mind and avoid becoming another M&A statistic.