Deal Killers: What Drives Buyers Away
M&A transactions are complex and there are numerous ways a deal can be derailed. Jeff Agnor and Scott Osborn, from Davis, Agnor, Rapaport & Skalny, David Witherspoon, from Katz Abosch, and Stu Welsh, from EGT Advisors, will discuss what can drive prospective buyers away from an acquisition, and ways to mitigate these issues. Topics will include:
- “Valuation Gap” (the gap between actual market value and Seller expectations or needs)
- The Seller’s emotional mindset and readiness to sell (emotions matter)
- Deal Fatigue (sometimes a result of too little or too much communication)
- Insufficient (or non-existent) management team
- Lack of a strong adviser team
- Too much (or too early) attorney involvement
We will also discuss some of the specific seller weaknesses that may be identified during the due diligence process, which can have the effect of reducing value or even driving away buyers. Due diligence requests, along with standard representations and warranties, force sellers to disclose everything – warts and all. In hindsight, these issues should have been addressed years before due diligence begins. We will discuss practical ways to address these internal weaknesses early on so the Seller is ready to respond rapidly (and impressively) to due diligence requests.
Panelists:
Jeff Agnor- Davis, Agnor, Rapaport & Skalny, LLC
Scott Osborn- Davis, Agnor, Rapaport & Skalny, LLC
Stuart Welsh- EGT Advisors
David T. Witherspoon- KatzAbosch
