Although every deal is unique, each presenting different dynamics, challenges, obstacles, and risks, there are some universal truths about the process of seeing a deal through to a successful closing, funding, and ownership transition.
One of these universal truths is the reality of deal fatigue—a point during the negotiation of a deal in which parties on both sides feel a sense of frustration, helplessness, irritation, and exhaustion.
Even when the deal’s economics are settled, and the negotiation phase is almost complete, this deal fatigue can set in. This fatigue results from the rigorous process of drafting all the documents, compiling all the data, obtaining the necessary approvals and consents, and checking all the boxes required to execute a transaction correctly.
In virtually every transaction, it’s common for a client to reach the point of deal fatigue. Whether it be a seasoned business executive or a gifted technician, craftsman, or artist who has started their own business and is ready to transition, practically every client reaches the point of deal fatigue.
This sense of fatigue is typically seen in the final phase of the process when attorneys from both sides work through what seems like a never-ending checklist of data and documents required to protect the interests of the buyer and seller and legally affect the transaction. It is at this point that sellers often become overwhelmed and frustrated.
However, it is essential to note that deal fatigue doesn’t just affect the sellers in the transaction.
In most cases, all parties significantly involved in the deal process experience fatigue to some degree. Sellers indeed, but buyers, attorneys, commercial bankers, accountants, and investment bankers fight the effects late in the process.
For sellers, it’s essential to know that you are not the only one who wishes the process was shorter, more manageable, and less frustrating.
Those who facilitate or execute transactions for a living often also reach the point of deal fatigue.
So, whether you are just beginning to consider a transaction or are neck-deep in the final days or weeks of one, know that sellers aren’t the only ones who grow weary and frustrated. The heaviest burden often falls on the seller.
If you’re considering the transition process and are awaiting the potential fatigue that comes with it, reach out to a CRI Capital Advisors professional for more information and advice on how to work through these symptoms of deal fatigue.