08 Sep 10 Common M&A Mistakes to Avoid (#6 of 10)
6. Losing momentum
Most successful deals have a sense of momentum and mutual trust between the parties because they are excited to move forward and close the deal. Each step is a negotiation so it’s generally better to negotiate the key points (price, terms, etc.) earlier in the process. A successful negotiation should create a sense of urgency as the parties shows flexibility and build trust. Due diligence can also be a momentum killer so try to keep it moving at a decent pace because the longer the process takes, the lower the probability the transaction will close. Each side can become frustrated and tired if they perceive the other side as not being sufficiently prepared, constantly re-negotiating deal points, and generally not moving fast enough.
Take home message: Keep the momentum going.