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Why M&A Deals Fall Apart

Member and Co-Chair of the Mintz International Practice Larry Naughton spoke to The Wall Street Journal about the standstill status of the M&A market for startups. Larry said, "The deal closing is less certain than a year ago. During due diligence, issues can arise that pull the price down even more. In cases where the buyer is a public company, its share price could decline midprocess, resulting in offers that may include shares that look unattractive, causing some sellers to end negotiations." He continued, "The sellers say: This price wasn’t as attractive as I thought and this whole process is getting harder. Let’s pull out of this."

Source

The Wall Street Journal