5 Key Traits of a Successful Deal

A successful deal is one that benefits both parties and can be monitored using a variety of methods. While every deal is different but there are some fundamental traits that every winning partnership should have in common.

Prepare Thoroughly

It is crucial to thoroughly prepare for negotiations prior to having a conversation. This includes researching the landscape of the market and identifying potential synergies. It is also essential to understand your counterpart’s goals, priorities and motivations. Having a thorough understanding of the viewpoint of the other party will help you gain the advantage and ensure that your deal is successful.

Be Prepared for Unexpected Events

Deal making is an unpredictable process, and unexpected alterations can frequently sabotage plans. It is vital that everyone is prepared for the unexpected, whether due to an unexpected discovery of a regulatory issue, a suit or any other unexpected situation. This can include having backup plans and having an exit plan in place in the event that the plan fails to go through.

Identify the most important people

Buyers should focus on keeping key team members from a target company following a sale. It is typical for acquirers to fail to retain talent, which can cause post-acquisition growth to slow down and diminish value. Understanding the values and culture of the target company is essential to ensuring that they are in line with the values of the company that is acquiring them. This will help to ensure that the acquired business will continue to grow its revenue, even after the deal. It is not uncommon for a buying company to see a drop in revenue after a deal since the team that was acquired is focused on achieving the synergies and revenue targets set prior to the acquisition.

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