I Used to Think a Failed Deal Meant I Lost

[Clement Oigoga Adams]

One of the best acquisition lessons I learned came from a deal I never closed.

It’s easy to look at a closed deal and focus on what went right.

But sometimes, the deals that fall apart teach you much more.

A deal can die because the numbers were wrong.

Maybe the repair estimate was too optimistic.

Maybe financing didn’t come together.

Maybe a title issue appeared late in the process.

Maybe the seller’s circumstances changed.

Maybe expectations were never aligned from the beginning.

Or sometimes, the biggest problem is simply poor communication.

None of those outcomes feel good when you’re in the middle of them.

But they can become valuable lessons if you take the time to ask:

“What could I have done better?”

Did I verify the numbers enough?

Did I ask the right questions?

Did I understand the seller’s situation?

Did I communicate clearly with everyone involved?

Did I move too quickly?

Did I ignore something because I wanted the deal to work?

That last question can be a tough one to answer honestly.

Every failed deal gives you an opportunity to improve your acquisition process.

You learn what to verify earlier.

You learn which questions to ask.

You learn where deals commonly get stuck.

And most importantly, you become better at recognizing problems before they become expensive problems.

A deal not closing isn't necessarily a wasted opportunity.

If you learn from it, the lesson can improve the next 10 deals you evaluate.

For the experienced acquisition professionals here:

What is the most valuable lesson you learned from a deal that ultimately never closed?