- Not Conducting a rigorous Porter's Five Forces Analysis.
- Having a board of members with zero industry experience.
- Overpaying for the deal.
- Poor due diligence.
- Deal structure terms (Downpayment, Stock, Earn outs, etc)
- Poor acquisition integration. Having a good 100-day plan helps.
- Poor assessment of the acquisition target's culture.
The better you understand these common causes, the easier it is to avoid them.
Sebastian Amieva
M&A Expert - Mentor - Investor