M&A Preparedness: How to plan for your next transaction

10 January 2020

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The M&A sale process has evolved immensely in recent decades, as buyers have become increasingly sophisticated and demanding. As a result, the preparation process for deal targets has necessarily become more rigorous – posing ongoing challenges for the sell-side of a transaction.

For this report, IHS Markit commissioned Mergermarket to survey dealmakers from corporate entities, investment banks, private equity and venture capital firms to find out how the deal preparation process has evolved and the challenges sellers face that threaten to stall deals or erode value.

Key findings include:

  • 67% of respondents agreed that the time required to make sell-side deal preparations has increased, either moderately (37%) or significantly (30%), in recent years.
  • 37% of respondents cited readying the necessary legal, financial and technical paperwork as the single greatest logistical challenge of sell-side deal preparation.
  • Respondents cited longer due diligence processes, difficulties agreeing on warranties and indemnities, and digital/technological issues as the most pressing issues facing sellers.