Top 10 M&A dealbreakers: #5 and #6

Poor Communication

Maintaining a good open dialogue helps reduce the chance of misunderstandings and surprises, and helps keep everyone focused on the ultimate goal – doing the deal – rather than letting them get bogged down in detail or point-scoring. Good advisers are critical here, ensuring the right level of information flow and ongoing communication between the parties.

Aggressive Tax Planning Structures

Unfortunately, some owner-managers’ tax planning is so complicated or aggressive that it’s difficult to unwind in the context of a sale, or crystallises far greater tax liabilities than expected. Basic tax planning is sensible and recommended – using EIS relief, EMI share options, and making sure you benefit from Entrepreneurs’ Relief – but structures which are too exotic can deter purchasers or make a deal impossible to complete.

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