Time kills deals. So why do so many acquirers leave sellers waiting?

A good friend of mine recently said, “Communication trumps everything in a service-based business.”

(And it appears that a lot of you would agree. My recent newsletter on how easily poor communication kills a client relationship inspired many of you to write back.)

We’ve all been on the giving and receiving end of poor communication. I know it’s not unheard of for firms to drop a client’s management accounts into their inbox on the 24th or 25th of the month with no context, no commentary, and very little communication in the lead-up to delivery. 

I think there’s no excuse for that, especially when it’s easier than ever to be in the ‘virtual room’ with clients using Slack, WhatsApp, or Teams. 

But this newsletter isn’t actually about the standard of communication between firms and clients. It’s about what happens when firm leaders find themselves on the other side of the equation - specifically during the M&A process.

It’s funny how fast poor communication irritates when the shoe is on the other foot. I’ve written before about how all-consuming and disorienting selling a firm can feel. For some sellers, it’s the biggest moment of their career. So it’s jarring, to say the least, when you’re left fighting for a buyer’s attention. 

If I were buying a business, I’m sure I’d move as quickly as possible on something I was interested in. And yet, from what I’ve heard, that’s rarely the case with acquirers today. 

My experience with flinder’s acquirers, Ascendant, was overwhelmingly positive, and it took us just 7 weeks to complete after agreeing heads of terms. But I know too many people in my circle who are trying to sell their firms and hitting a wall of poor communication. 

So what’s going on?