Mergers & Acquisitions is one of the most rewarding business feats but is undoubtedly one of the most taxing and arduous business exercises. It’s important to understand that the journey is long and deal fatigue is common if you are a staffing owner interested in M&A.
Experienced by parties on all sides of the transaction, deal fatigue is the emotional and mental exhaustion that start to arise as the deal progresses. The negotiation process can be time-consuming and taxing, requiring players to invest precious resources – time, money, and energy. These instances can cause parties to feel frustrated, exasperated, or even hopeless about the transaction. When handled incorrectly, deal fatigue might even kill the deal entirely.
Preparing for the long M&A process is key to keeping this type of stress at a minimum. Here are a few ways to do so.
Getting organized even before a transaction begins helps prevent delays as the deal moves forward. Sellers should ensure that all books and valuable paperwork are on hand and readily available. Any business adjustments and relevant audits must be completed before negotiations begin. For buyers, it’s important to secure funding and a legal counsel that is knowledgeable in the due diligence process.
Set clear timelines and transaction milestones
Negotiations may sometimes move from one step to the next without a clear timeframe for when the process will end. This usually happens when the parties involved do not set timelines and continue to negotiate without making much meaningful progress.
While the M&A process is infamous for delays, setting milestones and timelines creates a foundation for the deal to keep moving forward. An organized process reduces distractions, lowers the chance of unforeseen issues, and provides clarity for all those involved. Before going into a transaction, sellers would benefit from setting timeframes and communicating this to potential buyers.
Maintain regular, open communication and transparency
M&A negotiations involve business leaders with hectic schedules and activities. Regular scheduled communication and status updates help maintain deal momentum. During these sessions, it’s crucial for all parties to engage in open and honest communication about all aspects of the transaction. This allows for any changes to be considered and applied as soon and as easily as possible.
Work with a team with niche expertise
It’s difficult to focus on a transaction while running a business at the same time. M&A advisors help you navigate through the complexities of a merger or acquisition and ensure that you walk away with a good deal. Consider industry experience and expertise when selecting a team to work with. Partnering with an M&A advisor that is niche-focused on the staffing industry ensures that any issue specific to this field of business can be addressed and solved with expert knowledge.
Deal fatigue could arise at any point of the M&A process, but that doesn’t mean you can’t minimize it. Taking the steps to prepare for the transaction could help avoid delays and miscommunication that cause deal fatigue. Setting foundations and adopting the right mindset is crucial to avoiding emotional and mental exhaustion that comes from an M&A transaction.