5 Key Traits of a Successful Deal

A successful deal is a win-win for both parties, and can be measured in a variety ways. Although each deal is distinct, there are some key characteristics that any winning partnership should have in common.

Prepare thoroughly

It is essential to thoroughly prepare for negotiations before taking the table. This includes researching the market landscape and identifying synergies that could be a possibility. Understanding your counterpart’s goals, priorities, and motivations is crucial. Understanding the other side will give you more leverage and help ensure that your deal is successful.

Be prepared for the unexpected

Deal making can be a bit unpredictable and sudden twists during the process could derail plans. Whether it is due to the unexpected discovery of a regulatory issue an unexpected lawsuit, or some other circumstance, it is important for all parties to be prepared for the unexpected. This could include having a backup plan or an exit strategy in case the plan is not successful.

Identify the Key People

Buyers should consider retaining the key team members of a target company after a sale. It is typical for acquirers to not retain top talent, which can derail post-acquisition growth and erode value. It is important to be aware of the culture of the target and its values to ensure that it will be compatible with the acquisition company’s. This will ensure that the acquired business can virtual data storage: a cornerstone in modern M&A continue to grow its revenue even after a deal. It is not unusual for a buyer to experience a decrease in revenue after a deal. This is due to the fact that the acquired team is focused primarily on delivering the goals for revenue and synergies set before the acquisition.