22 Oct Successful Deal Execution is a Matter of Timing, Focus, Skill and Skill
Focus, timing, and above all, a cool focused mind are crucial for a successful deal’s execution. Deal professionals who are proficient in execution can spot miscommunications before they occur and clearly communicate complex concepts in writing, take note of details, resist the desire to gloss over complexities and, when necessary they can exert a soothing influence on those around them. It’s more than just their investment skills that allow them to do this, however; it’s an exclusive set of skills.
Deal execution is what converts a proposed acquisition into a closed deal from the identification and screening process to final negotiations and integration. Investors need to be able to manage the entire process that could include the gated approval of investments, a multi-staged due diligence process and a one-year operating plan. A better understanding of the global capital markets is the essential element in enabling this however there are a range of other factors that comprise the tools for successful execution, including a clear strategy, appropriate resource allocation and incentive programs, a strong focus on culture and sheer expertise.
Be aware that the other person is experiencing the same emotions the way you do. It can be easy to let perceived slights and miscommunications stall negotiations. It’s important to enter negotiations with an open mind to concessions, but be sure you offer something in exchange. This could be in the form of additional assets or an extension of the closing date or an agreement to work on a long-term basis.