The Importance of Mutual Respect and Qualification in Mergers and Acquisitions

Last week, we received an enquiry from a potential business acquirer—always a promising development for both us and our clients. It’s our standard practice to engage with such contacts, introducing ourselves and taking time to understand their business. This crucial step allows us to assess their interest and, more importantly, their capability to facilitate a deal. After all, business sales are complex and delicate, and ensuring alignment between buyer and seller is key to achieving a successful outcome.

However, during this particular interaction, I was taken aback. Upon reaching out to the potential acquirer, I was met with a curt remark: “I am the CEO and far too busy to answer these pointless questions.” I had simply started with a few standard background queries—questions designed not to create friction but to ensure that the conversation is productive, transparent, and, most importantly, safeguards the interests of my client.

I explained that gathering some basic background information helps us establish credibility and allows us to make sure the potential buyer is serious and capable of completing a deal. Unfortunately, my explanation was met with further dismissal, along with a suggestion to "look at my website if you want more information." For the record, we had already done that homework.

This encounter got me thinking about how crucial it is to foster mutual respect in business transactions. Yes, CEOs are busy, and the M&A process can seem demanding, but taking time for initial due diligence is not an obstacle; it’s a necessary safeguard for both parties.

When you’re representing a seller, it’s essential to validate the buyer’s credibility early on. Not everyone who expresses interest has the financial strength, industry knowledge, or intent to see a deal through. Protecting my client’s time and their confidential information is paramount. A website can only tell you so much, and what’s absent from public view is often the very information that can make or break a deal.

Respectful, clear communication is the foundation of any successful business transaction. If a potential acquirer cannot be bothered to engage in that process early on, it raises red flags about their commitment to a serious negotiation or their ability to manage the complex processes that follow—due diligence, negotiations, and the final transaction.

In our experience, the best deals come from partnerships where both parties are committed to the process, understand each other's needs, and are willing to invest time in building trust. While it may seem like a small hiccup at the beginning of the journey, an unwillingness to answer simple questions can signal much larger issues down the road.

In the fast-paced world of business sales, it’s easy to become laser-focused on outcomes. But it’s the process—the conversations, the relationship-building, the mutual respect that ensures those outcomes are not just successful but sustainable. Every deal has its unique challenges, and not all potential buyers will turn into completed transactions. But one thing is clear: the buyers who respect the process from the start are the ones most likely to cross the finish line.

As for this particular enquiry, we’ll keep looking for the right fit for our client—someone who values engagement, sees the bigger picture, and is willing to go through the necessary steps to make the right deal happen.

Talk to BuyMyBiz if are looking for a confidential sale of your small business.