Andrew Gazdecki explains why acquisition deals fail: sellers don't know their ideal buyer type or exit structure beforehand. Private equity values different things than individual buyers. Decide what you want before talking to anyone, or buyers will sense the uncertainty and use it against you.
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Okay, what are.
The most common reasons deals fall apart?
Common reason that I see all the time is not having a clear understanding. If you're a seller and you're ready to go through an acquisition, have a firm understanding of who your ideal buyer profile. Is it a individual buyer? Is it private equity? And what's important to that different type of buyer profile? 2. Have an understanding of what your ideal exit looks like. Is it majority cash up front? Is it the cash or the dollar amount? But maybe you're okay with a longer transition. So have those two things in mind and don't go back and forth. One way to a deal is when buyer sniffs out that you don't even know what you're looking for.
Yeah, good points because there's a lot of founders that do.
Have that figured out.
So when a buyer talks to a founder with clear communication around why they're selling, what does a good offer look like to them? The difference is very apparent. When they talk to someone who doesn't know those questions and just understand what buyers are going to ask, you'll be in good shape.
