Selling Your Startup

17Ways to Kill a Deal

According to a study published by Baker McKenzie,¹ 83 percent of acquisitions fail mainly due to issues about people—in essence, the buyer and the seller not taking into account the importance of culture when pursuing a deal.

But there are additional common pitfalls to watch out for during the M&A process, which we will cover in detail in this chapter. As the entrepreneur and operator of the business, you ultimately want to avoid giving the buyer a reason to back out from the deal.

Make sure you consider these factors up-front so that all of the extra work, distraction, and stress is worth it.

Not Respecting the Buyer

Given everything that is on the line here, you should be finding a buyer whom you like, trust, and respect.

That can be hard. It may not be bulletproof. It is the buyer's job to sell you, after all. Still, if you want to be confident your acquirers will follow through on their promises to take care of your team, on the plans for your company and products, and really do their best to follow through on their offer, then it is worth taking the time to get to know them up front.

So when you begin the dance with the buyers, be sure you treat them with respect. Even at this level, it's about people. People can be emotional. Most aren't going to tolerate you being disrespectful of their time, position, and team members. You don't want to work with a business partner like that. Nor does anyone else. If there is no respect, don't expect anything ...