28 Jul 10 Common M&A Mistakes to Avoid (#3 of 10)
In this blog series I’m describing ten common mistakes that we’ve seen in the M&A deal process. Every entrepreneur or executive who plans to buy or sell a company should avoid these common mistakes to increase their chances for success.
3. Listening to naysayers
Buying or selling a business often affects the interests of many stakeholders, either positively or negatively. It’s not uncommon for naysayers to discourage the deal based on the potential risks or plain old conflicts of interest. Examples include managers in the target company who worry about the change in ownership (or their own job security), accountants who are scared to lose a client, and lawyers that want to play it safe. If the transaction is based on a strong strategic rationale, the numbers make sense, and you have done sufficient due diligence and integration planning, stay on track unless some evidence comes up that makes the deal look bad.
Take home message: stick with your plan and don’t listen to naysayers.