Three Common Obstacles to Closing the Deal

Deal-making is more of an inside game than an outside one. The more you are able to recognize how your inner dialogue and belief systems impact the ease and flow of your deal, the better off you and your organization will be. To that point, below are the three common pitfalls, which have caused multi-million dollar deals to go bust. 

Limiting beliefs of the Seller

What is happening on the inside of the Seller during the deal-making process impacts the deal more than any valuation or perfectly executed exit strategy. Some common limiting belief systems/emotions which I have seen sabotage a deal are as follows:

• Fear
• Anxiety
• Self-doubt
• Can I really get what I want in this deal?
• Am I worthy of receiving the stated purchase price?

If the above emotions/belief systems are not acknowledged and released, your potential Buyer/Investor will sense that and it can kill your deal and/or make it harder for you to get your desired outcome. 

Attachment to the outcome

Attachments are the downfall of any deal. I have worked with many Sellers who have their sights set on getting a deal done with a particular Buyer only to be standing at the ”deal alter” alone. No matter where you are in the deal-making process, the lesson here is to remain open. Remain open to all possibilities and in the event that a potential Buyer steps out, trust that a more suitable one will come in and take its place.

Lack of conscious intent

Deal-making should not be done by the seat of one’s pants. As a CEO positioning the Company to be sold in the next year or so, you should start getting clear now on what you want your deal to look like (qualitatively and quantitatively). This clarity will ensure for a smoother process down the road. Check out last week's article on how to go about doing that. 

Comment below and let me know which one of the aforementioned tips resonated with you the most, I would love to hear from you.

Stacy Michelle is a Speaker and M&A Consultant to businesses across the country. Formerly on Wall Street, she now blends her intuitive skills and numbers know-how by supporting conscious businesses in getting deals done with grace and ease. To learn more about how Stacy can support you with your M&A (mergers and acquisitions) activity, schedule a 30 minute consult with her here.