5 Key Traits of a Successful Deal

A successful deal is one that benefits both parties and can be tracked using a variety of methods. Each deal is different, but there are certain characteristics that each successful partnership should possess.

Thoroughly prepared

Before you sit at the table to negotiate, it is important to plan thoroughly. This includes studying the market landscape and identifying potential synergies. Understanding the goals and priorities is also crucial. A thorough understanding of the perspective of the other side can give you the advantage and ensure that your deal is a success.

Be prepared for unexpected events

Deal making can be unpredictable, and unexpected twists in the process may derail plans. It is vital that everyone homepage is prepared for the unexpected, whether due to an unexpected finding of a regulated issue, a lawsuit or other unforeseeable situation. This includes having a backup plan as well as an exit plan in the event the plan fails.

Identify the most important people

Buyers should focus on retaining the key team members of a target company following a sale. Acquisitions often fail to retain important talent, which can hurt the value of the company and hamper growth after an acquisition. Understanding the values and culture of the company you are considering buying is crucial to ensure that they will fit the culture of the acquirer’s. This will ensure that the acquired company will continue to grow its revenue even after a deal. It is common for an acquired company to experience a dip in revenue following a deal, as the acquired team is focused on achieving synergies and goals for revenue set prior to the acquisition.