5 Key Traits of a Successful Deal

A successful deal is one that benefits both parties and can be monitored through many different methods. While every deal is different but there are some fundamental qualities that every successful partnership must exhibit.

Thoroughly prepared

It is crucial to thoroughly prepare for negotiations before getting at the table. This includes researching the nuances of the market and identifying possible synergies. Understanding your counterparts’ goals objectives, priorities, and motivations is essential. Understanding the other side’s goals, priorities and motivations will give you more leverage and help ensure that your deal is successful.

Be Prepared for Unexpected Events

Deal making can be unpredictable and sudden twists in the process can often cause a rift in plans. It is vital that all parties are prepared for the unexpected, whether that’s due to an unexpected finding of a regulation issue, a suit or other unforeseen circumstance. This may include having a backup plan as well as an exit strategy should the plan does not work.

Find the most important people

Buyers should concentrate on keeping the most important team members of a target company after the sale. It is not uncommon for acquirers to not retain top talent, which can slow growth post-acquisition and decrease value. It is vital to comprehend the culture of the target and its values to ensure that it is compatible with the acquiring company’s. This will ensure that the newly acquired business will continue to grow its revenue, even after the deal. It is not unusual for a company that is buying to experience a decline in revenue after a deal. This is due to the fact that the team that was acquired is focused on achieving the revenue targets and synergies established prior to the acquisition.

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