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WHY THE BEST PRICE MIGHT NOT ALWAYS WIN IN AN M&A TRANSACTION



A business Buyer doesnโ€™t always have to pay the highest price to win the deal.

Here are a few things that Sellers might value more than the headline purchase price alone.


๐Ÿญ) โ€œ๐—ช๐—ฒ ๐—ฐ๐—ฎ๐—ป ๐˜„๐—ผ๐—ฟ๐—ธ ๐˜„๐—ฒ๐—น๐—น ๐˜„๐—ถ๐˜๐—ต ๐˜†๐—ผ๐˜‚ ๐—ฎ๐—ป๐—ฑ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—บ๐—ฎ๐—ป๐—ฎ๐—ด๐—ฒ๐—บ๐—ฒ๐—ป๐˜โ€

Demonstrate fit and the willingness to partner with the Seller during the deal evaluation process and how the Buyer would treat the Sellerโ€™s management team and employees after the deal closes.


๐Ÿฎ) โ€œ๐—ช๐—ฒ ๐—ฐ๐—ฎ๐—ป ๐—ฐ๐—น๐—ผ๐˜€๐—ฒ ๐—พ๐˜‚๐—ถ๐—ฐ๐—ธ๐—น๐˜†โ€

As a Buyer, show that(i) the deal financing wonโ€™t come in the way to close,(ii) that you can diligence the company quickly because you have done the work to understand the industry and the business drivers and(iii) will prioritize the โ€œmust havesโ€ and the โ€œnice to havesโ€ appropriately during diligence


๐Ÿฏ) โ€œ๐—ช๐—ฒ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐—ฎ ๐˜๐—ฟ๐—ฎ๐—ฐ๐—ธ ๐—ฟ๐—ฒ๐—ฐ๐—ผ๐—ฟ๐—ฑ ๐—ผ๐—ณ ๐—ฑ๐—ผ๐—ถ๐—ป๐—ด ๐—ฑ๐—ฒ๐—ฎ๐—น๐˜€ ๐˜€๐˜‚๐—ฐ๐—ฐ๐—ฒ๐˜€๐˜€๐—ณ๐˜‚๐—น๐—น๐˜† โ€

Show that you have successfully closed and integrated similar deals in the past.

And if that is not necessarily the case, prove that youโ€™re prepared to invest in the process by hiring the right advisors and integration support team.

โ† Strategies to improve accuracies of a business forecast

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