Why majority of m&a processes are failing?

May 5, 2015

I am always shocked when I read a number of stats mentioning that more than 50% of m&a technology processes in Europe are failing; this is a scary number when you realize the time, the energy, the resources, the investment and even more importantly the huge distraction and risk for a company and its executive management;

 

There are plenty of reasons why m&a and also financing fail, but I really think the first and main reason is that the big majority of technology businesses in Europe are totally unknown by strategic buyers and the financial community.

 

Then, processes become more an education and learning process; always remember, an investor or a buyer are much more comfortable investing or buying businesses they have been following for months or years. One of the ways to get visible is definitely to use the tech research guys i.e Gartner, Forrester etc….but if you do not match their criteria you have zero chances to be included in their research.

 

Another very pragmatic and efficient way is to have a proactive and targeted approach to continuously be in contact with your community of top strategic vendors and financial investors; in others words don’t wait the moment when you want to sell your business or raise money to be in contact with those guys, but anticipate and build an efficient program…then, the day you want to do a transaction, they will already know who you are and what your business does !!!!

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