Dr. Allen Nazeri explains why M&A deals collapse after LOI signing and how to fix them. Due diligence surprises, financing problems, or team misalignment often derail transactions. Diagnose the real issue, renegotiate with fresh assumptions, consider earnouts or new deal structures, or bring in outside advisors to save the deal.
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You just landed a signed loi in your M and A deal. Congrats, right? But here's the twist. The real work and the real risk starts now. What I wish I knew a decade ago that a signed loi is just the start, not the finish line. The hardest part of the deal is still to come in M and A. A signed letter of intent feels like a major win. But deals fall apart at this stage more often than you'd think. Why? Due diligence can reveal ugly surprises, financing might evaporate or teams realize they're not actually on the same page. And don't underestimate deal fatigue. Long timelines can kill even the best deals. So when your LOI falls apart, don't panic. This is your chance to reset, refocus, and maybe even rescue the deal. Start by pinpointing what really went wrong. Is it a single issue or death by a thousand cuts? Skip the blame game and propose a clean slate discussion with new assumptions and clear milestones. Think creatively. Maybe it's time to revisit deal structure, add earnouts, or bring in a fresh advisor for perspective. And sometimes the smartest move is to walk away, regroup and preserve future opportunities. Bottom line? A failed LOI isn't the end for experienced M and A pros. It's just another step, one that can lead to stronger deals and better outcomes if you play it right. Don't forget to like subscribe and hit the bell icon to stay updated with Primexit's M&A advisory. For more insights and expert advice on healthcare, M and A and for a free valuation of your company, contact us today at valuations@pexits.com.