M&A transactions taking too long to close, say dealmakers

Advisers tired of lengthy deal processes, research reveals

Advisers tired of lengthy deal processes, research reveals

Bankers, lawyers, consultants and accountants specialising in mergers and acquisitions have expressed their frustrations in closing M&A deals.

A survey of 520 UK-based M&A dealmakers by by ansarada, the data room provider for M&A deals, finds that 49% want to close twice as many deals as they are currently completing. 

The average M&A consultant currently closes four deals per year on average but wants to complete eight M&A per year.

The study also identifies the main causes of delayed transactions, with the number one reason that one quarter of M&A dealmakers (26%) admit that the due diligence process gets in the way of deal completion.

A further 23% blame indecisive sellers as the main reason why deals are held up. 

This is significantly more of a problem than indecisive buyers, which only accounts for holding up 14% of deals.

UK dealmakers also acknowledge that there is significant time wasting in the M&A process. The average transaction has 12 days of wastage, adding significant amount of cost to an M&A deal. 

However nearly one in five (19%) of those surveyed state that 20 or more days are wasted in the average M&A deal.

Stephen Dearing, ansarada’s Vice President EMEA, said: “With the significant increase in M&A deals and the time taken to execute, there has been greater focus on successful completions. Naturally, there are elements of a deal which get in the way of closing that can frustrate all parties involved.”

Praseeda Nair

Praseeda Nair

Praseeda was Editor for GrowthBusiness.co.uk from 2016 to 2018.

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