A successful deal is a win for both parties, and can be measured in a variety of ways. Although each deal is distinct, there are some key qualities that every winning partnership should embody.
Thoroughly prepared
It is important to thoroughly prepare for negotiations prior to having a conversation. This involves researching the landscape of the market and identifying possible synergies. Understanding your counterpart’s goals and priorities is equally important. Understanding the viewpoint of the other party will give you leverage and help to ensure that your deal is successful.
Be prepared for the unexpected
Deal making can be unpredictable, and unexpected twists in the process are often able to disrupt plans. This could be due to the unexpected discovery of a regulatory issue an unexpected lawsuit, or data room service: simplifying complex legal processes some other situation, it is crucial that all parties are prepared for the unexpected. This could include having backup plans and an exit strategy in place should the plan fall through.
Identify Key People
Buyers should concentrate on retaining key team members from the target company following a sale. Acquirers often fail to retain key employees, which could erode value and derail growth following an acquisition. Understanding the values and culture of the company you are considering buying is essential to ensuring that they will fit the values of the company that is acquiring them. This will ensure that the acquired business can continue to increase its revenue after a deal. It is not uncommon for an acquiring firm to see a drop in revenue following a transaction. This is because the team of the acquired company is focused primarily on delivering the goals for revenue and synergies set before the acquisition.