Equip Your Team To Grow Your Business, FOCA Connection October 22-24, 2019

6 Reasons Acquisitions Fall Apart (Other Than Price)

by | Jul 19, 2019 | Acquisitions | 0 comments

Preparing for a Petro Acquisition (even if you’re not sure you’re ready yet)

Have you ever considered an acquisition for your petro business? Whether you’re actively thinking about acquiring a competitor or you’ve wondered what you’d do if someone made you an offer for your own business, there are several key factors to take into account––other than the price.

From our 25 years helping Petro marketers through this exact process, we’ve realized that there are six common reasons why buy/sell negotiations break down (and we can help you avoid them!).

Reason #6: Deciding Who Stays And Who Goes

Business is personal––especially when family is involved. And in most negotiations, viewpoints differ on the value of certain personnel, particularly if there is overlap in positions. While key personnel can be written into the Purchase Agreement, nothing can be worse for a company than retaining someone who doesn’t want to be there, unless it’s having to retain a virtually useless family member.

Solution:
  • Mutually exchange org charts, followed by a frank, delicately honest (and CEO-only level) discussion on key personnel.
  • Explore alternative paths for employees no longer needed post closing.
  • Design incentive programs for the keepers, potentially providing a bonus at closing to keep vitally needed due diligence or transition personnel.
  • Show compassion throughout the process and stay on track.
Stay tuned for the #5 reason negotiations break down (and a list of all top 6 reasons) later this week, but always remember:
Don’t Do Buy/Sell Discussions Alone

If you’d like to discuss more buy/sell questions, you can talk to a specialist for a confidential conversation, or call us directly at (817) 594-0546.

A quick conversation with our specialists could turn your next buy/sell negotiation into a triumph.

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