It takes no special talent to find companies to look at, make offers, arrange finance, & close deals. Any good broker can fill your plate with attractive companies to review.
This explains why most deals don’t add value.
Deals that add value are those that were well defined and researched on the front end by smart people using high value process and followed up with good negotiating, due diligence, and integration teams.
A failure in any of these areas has the potential of making a giant mistake. Half of all non-financial business failures were private equity owned last year.
Even the people that should know how to make acquisitions are making big mistakes.
Even the best team can still make mistakes, but far fewer and much smaller.
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