Why Strong M&A Outcomes Start Long Before the Deal

When it comes to selling a business, it’s natural to focus on the deal mechanics such as valuation, structure, and terms. However, what sets the most successful transactions apart isn’t just what’s on paper, it’s the trust built between buyer and seller.

So, why is it worth spending 30 minutes once or twice a year to nurture trust? For founders, it can be one of the most practical ways to future-proof an eventual exit.

Why Relationship-Driven M&A Wins

Decades of research in organizational behaviour and corporate strategy point to a simple truth: familiarity and trust between parties materially improve deal outcomes.

According to a Harvard Business Review study, many M&A deals underperform because acquirers focus too heavily on financial or operational synergies and overlook underlying value drivers such as relationship quality and strategic alignment.

From the seller’s perspective, relationships matter even more. Familiarity with a buyer provides the space to ask questions, test alignment, and understand what life after close could truly look like.

The Cost of Waiting to be “Deal-Ready”

Sellers who wait to engage until a process is underway may feel additional stress by demanding timelines, data requests, and pressure-filled decisions. Founders who’ve invested in relationship-building with a buyer may face similar challenges, but with a critical head start:

  • They know who they’re dealing with
  • They’ve gained insight into what
  • With a clear understanding of what the acquirer values, they can prepare well in advance, reducing last-minute pressure
  • They’ve had time to align expectations internally

This small but intentional long-term connection builds shared context that pays dividends when the time comes to transact.

The Soft Data: Familiarity Breeds Collaboration

While M&A data is often focused on multiples and margins, there’s a growing body of soft data and expert insight that highlights the impact of familiarity:

  • A Strategic Management Journal study found that “relational capital”, the trust and history between parties, significantly improves post-acquisition knowledge transfer and integration success
  • According to Deloitte, early alignment and relationship-building are consistently cited as key enablers of successful integration. In their CFO Insights report, they highlight that companies who establish integration priorities and trust prior to close see stronger results post-transaction.
  • Bain & Company echoes this view in their article on The 10 Steps to Successful M&A Integration. Their research shows that prior engagement helps teams align faster, avoid friction, and stay focused on business continuity.
Final Thought: 30 Minutes That Compound Over Years

M&A doesn’t have to be a cold, fast-moving negotiation. At Perseus, we believe in building relationships early for the sake of alignment and trust.

Even a brief conversation once or twice a year can go a long way in shaping a shared future. When it’s time to make a decision that defines your company’s next chapter, it helps to know the people on the other side of the table.

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