Tips to Prevent Buyer's Remorse in M&A

10 questions that prevent business-buying disasters. After 20 years of acquisitions, here's what I ask: 1. Why is the owner REALLY selling? "Retirement" might mean burnout. "New opportunities" could mean financial struggles. 80% of listed businesses never sell because buyers discover undisclosed issues. 2. What are the key revenue streams? The SBA reports 70% of businesses rely on fewer than 5 customers for most revenue. Look for diversification opportunities. 3. What's the REAL cash flow? 60% of buyers report inaccurate financials as their biggest issue. Many owners optimize for tax reduction, not accurate reporting. 4. Who are the key employees? Most employees stay if: • They don't know about the sale until it happens • You reassure them about job security immediately • You maintain their salary and benefits 5. What systems exist? Businesses with documented SOPs sell for 20-30 times more. No SOPs? That's your opportunity to create value. 6. What's the competitive landscape? 42% of small businesses fail due to lack of market need. Always assess how tech might impact the business. 7. What customer concentration risks exist? My rule: Keep your largest customer below 20% of revenue. 8. What growth opportunities exist? 74% of buyers who implement growth strategies in year one report increased profits. 9. What liabilities am I inheriting? A friend nearly went bankrupt after missing a contract clause allowing merchandise returns. Always check contracts and regulatory compliance. 10. What is the seller's role post-sale? Acquisitions with strong transition plans see 30% higher success rates. Buying a business is inherently risky, but you can identify and manage those risks. --- Thanks for reading! Follow me, Walker Deibel, for more business insights like the above. PS. In case you didn't know, I send out a free, 2,500 word newsletter every single week to 70,000 acquisition entrepreneurs. Master acquisitions HERE: walkerdeibel.com - If you enjoyed this post: ♻️ Reshare for others who might find it useful ➕ Follow me, Walker Deibel for more 💭 Share your thoughts below 👇

Here’s the deal: traditional M&A processes are reactive, inefficient, and often set buyers up for failure. 𝐁𝐮𝐲𝐞𝐫-𝐋𝐞𝐝 𝐌&𝐀 flips the script with a five-pillar framework designed to put buyers in control and deliver long-term value.⁣⁣ ⁣⁣ Let’s start with the first pillar: 𝐍𝐞𝐯𝐞𝐫 𝐌&𝐀 𝐨𝐧 𝐈𝐦𝐩𝐮𝐥𝐬𝐞.⁣⁣ Deals fail when buyers jump in without a plan. A winning strategy begins with clear goals and a proactive approach. Don’t sit back and wait for opportunities—identify and target companies that align with your vision and objectives.⁣⁣ ⁣⁣ Here’s a truth we all know: 𝐛𝐮𝐲𝐢𝐧𝐠 𝐢𝐧 𝐚𝐧 𝐚𝐮𝐜𝐭𝐢𝐨𝐧 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 𝐬𝐮𝐜𝐤𝐬. The real winners in M&A are the ones who’ve established relationships early, often securing deals—even with lower bids. Engaging early puts you in the driver’s seat. You define the vision, evaluate cultural fit, and build an integration thesis—all before signing the LOI.⁣⁣ This is about intentionality. Ask yourself:⁣⁣ ✔️ Why are we buying this company?⁣⁣ ✔️What does success look like post-close?⁣⁣ ✔️Are they bringing unique capabilities or customer value?⁣⁣ ✔️How will cultures align, and what will it take to integrate effectively?⁣⁣ This isn’t about closing the deal—it’s about making it successful. It’s about creating a roadmap for what the combined company will look like and ensuring every decision aligns with long-term value creation.⁣⁣ How is your team taking a 𝐁𝐮𝐲𝐞𝐫-𝐋𝐞𝐝 𝐌&𝐀 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 to sourcing and executing deals? 

M&A Mistakes (and How to Avoid Them) 1️⃣ Rushed Closing Pushing to close deals in unrealistic timeframes leads to costly post-closing problems. How to Avoid: ↳ Follow all five M&A phases—each serves a crucial purpose. ↳ Involve legal counsel early to uncover hidden risks before closing. 2️⃣ Skipping Due Diligence Bypassing thorough investigation leaves dangerous blind spots in the transaction. How to Avoid: ↳ Conduct a full review of financial, legal, and operational matters. ↳ Allocate enough time for due diligence before finalizing terms. 3️⃣ Misusing MOUs Treating preliminary documents as binding agreements creates contractual confusion. How to Avoid: ↳ Use MOUs strictly for preliminary discussions, not commitments. ↳ Ensure formal agreements follow any letter of intent. 4️⃣ DIY Legal Work Handling complex M&A negotiations without expertise exposes major risks. How to Avoid: ↳ Engage M&A experts who understand industry-specific laws. ↳ Follow the "5-50 rule"—pay $5 now or $50 later. 5️⃣ Overlooking Required Permissions Missing key third-party approvals can delay or derail transactions. How to Avoid: ↳ Identify all required consents early in the process. ↳ Build buffers for landlord, vendor, and regulatory approvals. 6️⃣ Undefined Liabilities Failing to address pre-closing obligations can cause post-sale disputes. How to Avoid: ↳ Clearly define responsibility for pre-closing issues. ↳ Address known risks directly in purchase agreements. 7️⃣ Permit & License Oversights Assuming licenses and accreditations are easily transferable. How to Avoid: ↳ Research transferability requirements well in advance. ↳ Start regulatory transitions early to prevent delays. 8️⃣ Misaligned Post-Closing Expectations Neglecting to define post-closing roles and responsibilities. How to Avoid: ↳ Document specific post-closing obligations in agreements. ↳ Establish clear communication for post-closing matters. Successful M&A transactions require careful planning, due diligence, and expert guidance. Avoiding these mistakes ensures a smoother deal, stronger valuation, and fewer post-closing complications. Approach each transaction with precision, strategy, and the right advisors to maximize success. Found this helpful? Follow Kay Azmat for more insights!

Nearly 50% of financial advisors who sold or merged their RIA were dissatisfied with the outcome. How can that be? The M&A market for RIAs is booming, but it comes with a sobering reality: many of the deals leave the sellers unhappy, according to recent research by Jerry D. Prince and Russ Alan Prince. The reasons? Personal conflict. Lack of promised support and resources. And disappointment in the level of total financial payout. Fortunately, much is this post deal angst is preventable if you do the right work pre-deal. In my latest Barron's Advisor Podcast, I spoke with Nikolee Turner, MEd, MBA, head of Schwab Advisor Services’ business consulting team, about how advisors can increase the odds of satisfaction in M&A transactions. Here are some actionable strategies: ✅ Set Clear Expectations: Whether selling to exit or to grow, you must critically evaluate promises of support, resources, and culture alignment from potential acquirers. Get it in writing. Promises are cheap when you’re a prospect—and dear when a client. ✅ Follow the Envision, Prepare, Connect Framework: Nikolee emphasized Schwab’s approach to ensure advisors know their "why" for M&A, prepare their firms for maximum value, and find the right partner to achieve long-term goals. ✅ Prioritize Communication and Culture: Cultural misalignment can also drive dissatisfaction. Nikolee shared how successful firms define and align cultures early, while also communicating transparently with employees to mitigate fears and build trust. 🔑 Key Takeaway: Both buyers and sellers must focus on clarity, alignment, and preparation during the M&A process to ensure long-term satisfaction and success. 🎧 See comments for the link to listen to the full episode. What’s been your experience with M&A in the RIA space? If you’ve been part of a transaction, what were the keys to making it a success—or the causes of regret? Let’s discuss in the comments! #MergersAndAcquisitions #RIA #FinancialAdvisors #BusinessGrowth #Leadership #CultureAlignment

Hard truth, most M&As fail. Yet, I have seen others succeed. The number one reason I have had clients succeed is that they prioritize people and culture. Significant research has been done on this issue, and here is a list of the top 10 reasons mergers and acquisitions fail: 1. They overpay for acquisitions. 2. Poor due diligence tanks the deal. 3. Cultural clashes destroy value. 4. Synergies never materialize. 5. Strategic rationale is weak. 6. Post-merger integration fails. 7. Human factors get ignored. 8. Communication breaks down. 9. Regulatory issues create friction. 10. Top talent walks away. But here's your playbook for success: 1. Strategic Planning & Execution ↳ Do thorough due diligence, set clear objectives, and build comprehensive integration plans. 2. Vision, Mission & Values ↳ Map the landscape of both organizations. ↳ Create an inspiring unified vision. ↳ Craft a compelling mission. ↳ Set shared values that guide decisions. ↳ Build a strategy that maximizes strengths. 3. Market Analysis ↳ Study the industry, customers, competition, and opportunities deeply. 4. Communication Strategy ↳ Build a clear plan to keep all stakeholders aligned and informed. 5. Integration Planning ↳ Form a dedicated team, create detailed plans, and tackle cultural issues head-on. 6. Talent Strategy ↳ Review org structures. ↳ Map roles clearly. ↳ Set selection criteria. ↳ Plan transitions carefully. ↳ Keep key players engaged. 7. Leadership Assessment ↳ Start during due diligence. ↳ Use data to drive decisions. ↳ Focus on team dynamics. ↳ Move decisively on key roles. Follow this framework, and you'll dramatically increase your odds of M&A success. The key? A systematic approach. Focus on clear communication, thorough planning, and smart talent management. Tell me, what was your strategy for a successful M&A? — P.S. Unlock 20 years' worth of leadership lessons sent straight to your inbox. Every Wednesday, I share exclusive insights and actionable tips on my newsletter. (Link in my bio to sign up). Remember, leaders succeed together.

The root cause of failure in buy-side M&A? It's not a poor strategy, but inadequate due diligence. The solution? You must shift your focus. Here's how: 1. Dig deeper: Look beyond the financials. Understand the company culture, key employees, and hidden liabilities. 2. Think long-term: Don't just focus on immediate gains. Consider how the acquisition fits into your 5-10 year plan. 3. Involve the right people: Bring in industry experts, not generalists. Their experience can uncover critical details. 4. Be patient: Rushing due diligence is a recipe for disaster. Take the time to do it right… and make sure the seller knows why. 5. Plan for integration: Start thinking about how you'll merge operations from day one. Don't skimp on due diligence. It's your best defense against a failed acquisition. Need help with your M&A strategy? Drop me a DM with "DILIGENCE," and let's talk about how to set your deal up for success.