8 Ways to Blow a Good M&A Deal

Mergers and acquisitions are a key part of many fast-growing advisory firms’ strategies, with deals big and small getting a lot of attention from researchers, commentators and journalists alike.

In just the past few months, for example, significant deals have been inked by the likes of Cetera, Hightower, LPL Financial, Mariner Wealth Advisors, Carson Group, Dynasty Financial Partners and others. Smaller acquisitions are also happening at a rapid pace, industry data shows, and all signs suggest the M&A push is here to stay.

That’s one reason why Dynasty Financial Partners recently hosted a closed door M&A workshop in New York, where the firm invited advisors to bring their questions and concerns.

In sharing some highlights of the event with ThinkAdvisor, Dynasty executive Harris Baltch said the quality of the dialogue was fantastic — especially with respect to the honesty about how deals can go wrong. It’s easy to talk about the deals that go well, Baltch noted, but it’s also important to understand that M&A transactions aren’t always successful, especially if firm leaders ignore potential red flags or rush through the dealmaking process.

See the slideshow for a summary of eight key mistakes and challenges attendees identified at the M&A event. By keeping these issues in mind, advisory firm leaders can enter into the transaction process with clear eyes about the mistakes that can blow up even a good deal.