[vc_row][vc_column][vc_video link="https://youtu.be/txZ_iN3rpE8"][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The most common hold-ups in a business acquisition are revealed in an exclusive video interview with Rob Goddard of Evolution Complete Business Sales.
The transcript of the interview follows:
It usually revolves around one topic which is that the buyer and seller or one or the other get lost in the detail.
They lose sight of the main objective which is to try and put two businesses together.
Or if it's an investment play, that an incoming investor adds value to the business.
Often they can get lost in items of detail - what happens to the deal process is that it slows it down.
It also makes it more expensive because not only with management on both sides trying to iron out a deal, but if you've got lawyers acting - and accountants and other advisers - the bills quite often, particularly with lawyers, can extend. Especially if you're playing your lawyer by the hour.
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]One's got to be careful of dragging out the deal negotiation process unduly. It will get expensive and something comes into play - which will be the subject of my second book - which is deal fatigue.
With buyers and sellers there comes a point when it goes on for far too long and one or both parties just get tired of it all.
They keep going round the houses and nothing seems to be able to be crystallized. You can be 18 months down the line and there's nothing concrete, nothing materialized and no agreement to go forward.
What does this mean for the deal?
Stalemate! One or the other will fade away, disengage from the process and you may have lost a year, 18 months, two years. Three years is the longest period of time I've heard about which is incredible. It should be done over a three, four month period to negotiate, to construct a deal.
And then get the lawyers involved and make sure the lawyer is on an hourly rate. Sorry lawyers, fixed price!
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