The most common things M&A investors worry about having to manage on the buy side are:
1. Either missing something critical that undermines - or over-emphasising past performance to support - the investment thesis ⚠
2. Critical information being withheld or misrepresented by the seller(s) / management 🔏
3. Underestimating or not fully understanding key macro variables including regulatory and geopolitical factors 🌐
4. Not being able to address a question or concern raised by the IC / board⚡
5. Satisfying a growing list of internal compliance requirements, including ESG demands which are not always easy to understand⁉
6. Remaining competitive throughout a deal, including in light of identified risks or changes to underlying business performance ✳
7. Being able to manage advisor feedback / recommendations without jeopardising the deal 🛑
8. Cost over-runs, including dead-deal costs 💰
9. Screwing-up the SHA / Investor Agreement / partner selection and ending-up in an unworkable arrangement for years to come ☢
10. Speed of execution / managing deal fatigue and counterparties on protracted / inefficient deals ⏳
This list is compiled from the hundreds of conversations I’ve had with deal teams and advisors over the last several months.
Do you agree. What am I missing?