Don't Overlook This Essential Aspect of the Deal Process

I'm on a mission to coin a new term.

Not just for the sake of it, but because I strongly believe it's a topic we're not focusing on enough.

~seller friction~

The M&A process is high-stress and emotional, especially for those who are selling their life's work.

What often gets overlooked is the psychological and emotional toll the process takes on the sellers. This is what I refer to as "seller friction."

Anyone who has been the subject of due diligence knows it's about as fun as a tooth extraction. But it's undoubtedly a necessary evil in M&A.

Seller friction is the stress of having every aspect of their business scrutinized, the anxiety of waiting for the next set of queries, the emotional attachment to a business they've built, and the uncertainty of what lies ahead.

Now imagine having to do it not just once, but maybe multiple times due to broken deals!

Understanding and addressing seller friction is crucial to creating a successful M&A transaction. So often, deals fall apart or get delayed due to the root cause of seller friction.

Recognizing this, we should develop strategies to mitigate these stresses, such as transparent communication, empathy, and providing clarity on the process and its outcomes.

By coining the term "seller friction," I aim to bring awareness to this often-overlooked aspect of M&A.

It's a call to action for all of us involved in these transactions to be more mindful of the human element in these complex deals, creating a better outcome for all involved.

-----

Reach out to learn more about Petracca Group's proprietary methods to reduce seller friction in the financial due diligence process.