37% of buyers fail to acquire a business: why and how to remedy this?

The quest to acquire a business is an intense adventure. According to a recent study, 37% of buyers fail to achieve their goal . Why? Because the process of finding a target too often resembles a real race against time , conducted with limited resources, an often improvised methodology and a limited capacity to seize the opportunities that arise.

A path strewn with pitfalls

The buyers, whether they are executives in retraining or passionate entrepreneurs, face several major challenges:

• Reinventing the wheel : Too many buyers start their search without a structured plan, which leads them to repeat mistakes that others have already made. The lack of a clear framework or proven method makes the process considerably more cumbersome.

• Analyzing unsuitable targets : How many buyers have spent months exploring a business only to realize, too late, that the sector was not right for them, or that profitability was a mirage? Preliminary analysis is too often neglected.

• Missed Opportunities : A good deal can fail for a variety of reasons: slow negotiations, lack of preparation, or difficulty convincing sellers.

These obstacles, although avoidable, illustrate one thing: failure is not inevitable, but a question of preparation.

A strategic discipline for success

To avoid joining the ranks of this 37%, here are three essential axes:

1. Have a structured plan : Investing time to develop a clear strategy can make all the difference. Identify your target sectors, define your non-negotiable criteria, and establish a realistic timeline.

2. Build a solid network : Too many buyers isolate themselves in their search. A network of professionals, such as brokers, lawyers or specialized accountants, can multiply your chances of finding the right target.

3. Accelerate decision-making : An acquisition opportunity doesn’t wait. The ability to quickly analyze a business and engage in firm negotiations is crucial.

Time, a critical factor

Every day that passes without a clear strategy is a lost opportunity. In a competitive market, time is the enemy of ill-prepared buyers . A study published in Harvard Business Review shows that 70% of successful transactions are the result of a methodical approach, with controlled deadlines and suitable tools ( HBR, 2021 ).

Lessons from failure: learning to search better

Every failure holds a valuable lesson. If you’ve lost an opportunity or wasted time on the wrong target, it’s crucial to reevaluate your approach. As Tom Peters said, “Excellence is not an aspiration; it’s a discipline.” Excellence in business recovery is about careful preparation and rapid action.

Avoid the wheel that spins empty

The 37% failure rate should not discourage you, but rather remind you of the importance of a strategic approach. Business recovery is not a sprint, but an endurance race where every move counts. Prepare yourself, structure your research, and surround yourself with the right partners. The future of your entrepreneurial project depends on your ability to transform a complex process into a success.

References:

1. Harvard Business Review . “Keys to Successful M&A Deals.” » 2021.

2. Ministry of Economy, Innovation and Energy of Quebec. “Business recovery statistics.” Annual report 2022.

3. Forbes. “Why Many Business Acquisitions Fail.” » 2020.