When planning an M&A deal, the motivation of each side matters. 

The seller will need to have ready a reasonable answer to this question. Possible seller motivations include:

• Opportunity to make a capital gain?
• Realize opportunities?
• Forced to sell – bankruptcy, death or sickness?
• Retiring?
• Increased regulation?
• Increased competition or failing business?
• If the latter – is there a turnaround opportunity or an asset opportunity for the buyer?
• Etc.

The buyer may want access to a new market, product or technology. But not always. Other reasons for buying include:

• Fear of falling behind.
• Access to new customers or sector.
• Economies of scale.
• Market dominance.
• Turnaround opportunity.
• Asset opportunity.
• Etc.

But the buyer must do due diligence and be careful not to over-spend.

It is also vital for the buyer to plan “the morning after”. How will the buyer integrate the purchased operation into its pre-existing operation?

Next Steps:

• Start planning the ingredients of your proposed acquisition or sale based on the above.
• Many of the surprises may be predictable with proper preparation.
• What is the other side really after? Can you read between the lines?
• Consult legal and professional advisors in each country concerned in specific cases.
• Contact us if you are looking for an M&A candidate to buy or sell.
• Contact us if you have your candidate and want to prepare for an M&A deal.

© Leon Harris 19.5.25, all rights reserved.  Email: [email protected],  Cell: +972-54-6449398,