By Tom Schramski, PhD
Volume 1 Issue 11, June 24, 2014
Recently, I was working with an executive who was interested in purchasing another company as part of his organization’s strategic plan. As he attempted to make an offer, we struggled through several stages of “What needs to be in the offer?” “This may be more than we can handle,” and, ultimately, “What if the business tanks after we buy it?” Whether you are a buyer, seller, or standing on the sidelines, these are all very reasonable concerns.
Many excellent opportunities in all areas of life are missed for reasons that are not primarily financial. Here are four examples of why it’s often tough to make a great offer:
There is always risk that we naturally try to mitigate in any type of professional transaction. The risk increases with the size and complexity of the deal, as do the attempts to limit that risk. But what is sometimes lost in transactions gone astray is attention to the basic characteristics of great deals – the competence to undertake a valuable action, the confidence that you can do it, the capability to make it work for your stakeholders, and the basic courage to move forward in a world of imperfection.
Tom was the Founder and Managing Partner of VERTESS. He was a Certified Merger & Acquisition Advisor (CM&AA), consultant, and Licensed Psychologist with over 35 years of very successful national experience in the healthcare marketplace, including co-founding and building a $25 million behavioral health/disabilities services company. Tom represented sellers and investors across the healthcare spectrum and was recognized for his executive leadership in the 2005 Entrepreneur of the Year issue of Inc. Tom passed away in December 2018.