How can delays derail your business sale?
In mergers and acquisitions, time is one of the most overlooked yet crucial factors in a successful sale. The adage "time kills transactions" holds true: delays derail deals, waste valuable resources and raise costs for everyone involved. Studies, including from Harvard Business Review, find that nearly 90% of M&A transactions fail for various reasons, with delays among the most common — so the longer a sale takes, the higher the chance it falls apart. Four time-related risks matter most, each with a practical fix.
1. Lack of preparation — get financials accurate and up to date (with monthly updates during the process), organize key contracts and documents, document standard operating procedures, engage buyers early and delegate day-to-day operations
2. Not having the right team — assemble M&A experts such as financial advisors, accountants, lawyers and business brokers to streamline the process and keep communication smooth
3. Unclear exit motivation — reflect on and clearly articulate why you are selling to build buyer trust, keep everyone aligned and avoid negotiation slowdowns
4. Misunderstanding your value — get a professional, industry-specific valuation to align expectations between you and buyers and speed up negotiation
The M&A phases — pre-process preparation, assembling your team, strategy and planning, marketing the transaction, buyer selection, negotiations and due diligence. Due diligence is usually the most time-consuming phase (typically 60 to 90 days), and good preparation can shorten it.
Best practices — centralize documentation, clarify your goals, build strategic relationships early, hire experienced advisors, educate yourself on valuation and keep stakeholders informed about timelines and roles.
Key facts: how delays derail a sale
Nearly 90% of M&A transactions fail (HBR); delays are among the most common causes
Four delay risks: poor preparation, wrong team, unclear motivation, misjudged value
Due diligence is the longest phase (60 to 90 days); preparation shortens it
Mitigate with organized documents, clear goals, early relationships and experienced advisors
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Disclaimer: This article is for general informational purposes only and does not constitute legal, tax or financial advice. Consult qualified advisors regarding your specific circumstances.
