TARGET’S PROBLEMS 1000BANKS SOLVES
- No immediate access to a pool of buyers, heavy dependence on random “connections”
- Lack of insightful precision into buyers’ current interests to develop a highly marketable selling position
- Reliance on an a priori limited knowledge of a broker (investment banker)
- Risk of irreparable damage from a leak of intended and/or failed merger
- Lack of negotiating leverage to secure compensation in the case of a failed merger; to achieve a fair pricing formula
- Overwhelming complexity of the procedure and lack of in-house expertise; absence of skilled M&A manpower
- Mandatory requirement of a comprehensive market test implies disclosing a selling intent and opening up to vulnerability of such a disclosure
- Length and cost of deal making
