Mergers and acquisitions are notorious for being agonizing affairs that all too frequently collapse before the end. Surveys suggest that between 50% and 77% of M&A deals don’t make it through to the end.
If you’re involved in a potential merger or acquisition, then the most important thing for you is that you’re satisfied with the results. It’s a testament to how difficult it is to satisfy all parties that the failure rate is high.
So what if you are happy with the way things look, but another party is holding out? If they’re raising many objections, then the deal’s probably just not going to work. In some cases, it’s better to walk away without wasting any more time. However, if it’s a toss-up, there are a few things you can do to help the coin land on your side.
Below are a few suggestions to help you understand your partner and show them why the deal will work for them.
1) Make Them Feel Secure
A lot of sensitive and important data needs to be shared during M&A negotiations. The way a company handles data says a lot about its ethos, so make sure you’re showing how diligent you are every step of the way.
Set up an M&A Data Room and make sure it’s the very best you can offer. Making an impression with a high level of cybersecurity is in the 21st Century what wining and dining at an exclusive restaurant was in the 20th.
Whichever side of the negotiations you’re on, showing that you treat important information with respect establishes you as someone worth doing business with. On a practical level, a quality M&A data room also simplifies the entire process hugely; all of your shared files are in one digital space.
2) Care About Your Partner’s Team
You’re naturally going to take an interest in any business you’re in M&A negotiations with. But is that interest professional or personal? If you want to make an impression, you might have to start thinking about the values you see in the other party’s company and how you can make the team feel appreciated.
Whether you’re selling, buying, or merging, the companies you’re dealing with are more than just balance sheets and ‘name of industry.’ Taking an interest in the other party’s employees not only makes it easier to decide if you want to do business; it shows them that you care about their team.
Successful partnerships thrive on openness and sincerity. Take the time to get to know who you’re dealing with, and make them feel welcome on your end. If you want your business M&A plan to be successful, you can definitely count on with Andrew Barnett who is known to be great in helping every business process the plan of the merging and acquisition smoothly.
3) Learn Your Partner’s Culture
International M&A can be especially prone to failure. This is partly because many companies go into negotiations without taking the time to learn how business works in other countries. And it does work differently.
Think of it not as an attempt to woo someone into closing a deal but as a learning opportunity. Your international partners are bound to be curious to learn more about the way you operate, too. Take a genuine interest and show respect.
Reading up in advance is a great way to avoid a painful faux-pas, but don’t let books curate the relationship. People are more likely to listen and respond positively to your suggestions if they feel you’re taking them seriously.
The Bottom Line
Showing integrity, honesty, and respect is how to bring someone round to your side. If you’re ready to agree to the terms of an M&A negotiation, focus on making your potential partner feel appreciated and secure with the deal. Let them know they’re making the right choice by sharing your excitement about the partnership!
