There’s been quite a few deals that I’ve been on where the selling company is trying to rush the diligence process to meet an arbitrary deadline. It feels like a red flag as it would mean reducing the diligence timeline and compromising what we could learn in diligence. Has anyone else experienced this? Should it be a red flag that company may be hiding something, or is this the norm?
I have a similar experience, however, with the caveat that the buying company also rushed the diligence process to meet an arbitrary deadline. In that case, it was a Fortune 100 buying a mom-and-pop shop (as I like to call them) in the industrial sector. Also in my experience, this was (or at least should have been) a huge red flag. In this case, it failed post-merger primarily due to culture, but it was also challenged by operational margins, vendor contracts, and market conditions which tragically ultimately led to plant closure.