Like us, you may have experienced some of the following issues in transactions. We aim to mitigate these with a structured process and continual communication.
- Agreeing terms = transaction (Taking the foot off the pedal)
- Trying to make a prospect/transaction fit (“If it looks like a fish, smells like a fish, it’s a fish”)
- Small and large transactions can take similar time and energy
- Transaction sponsors “gaming” the process and/or negotiating the price upfront – conflict of interest
- Unclear accountability and/or responsibility – “Anyone can do a deal” (so they do)
- Offers and pricing that is not peer-reviewed (it’s difficult to mark your own homework)
- That’s why it’s a benefit having a team vs a lone operator
- Orphan transactions – unknown to/not supported by business unit allocated to
- Bringing onboard disillusioned owners
- Acquisitions can have a significant price above tangible NAV destroying earnings if accounting allocation between goodwill and amortised intangibles is not carefully considered
- Incomplete implementation, incorrect book entries
Marsden Advisory 