Yes I do agree tax and HR implications seem to be overlooked in many cases when rushing to close the deal. Other issues I have seen are overoptimistic growth forecasts and synergies estimates. I know this is also cultural when looking at valuation with advisors or across many exec/BoD teams but many companies have a tendency to do simple scenario analysis and do never want to consider a big downturn or push sensitivities on the drivers and competitors. I have seen growth rate in the perpetuity going to the sky without considering the ‘physical’ limitations of the market (being the number of potential customers or the infrastructure capacity. For example, a train or a plane can carry a certain number of passengers after you can try to put more trains (then extra costs) or on the roof of the train but it does not work for a plane and you always reach a limit. In some cases people do not want to hear you have reached the capacity of the trainstation or airport and a diminished or downgraded service (in comparison to the business plan) would lead to potential lost revenue or require further capital expenditures. Downplaying the risks or hiding them can also have a big impact (lack of expertise, desire to absolutely close the deal at any cost, etc.)
