Effective deal execution is a matter of concentration, timing, and, above all else, a cool mind. Deal professionals who execute well can identify miscommunications as they occur, clearly convey complex concepts in writing, document details, resist the desire to gloss over complexities and, if needed be a calm influence on those around them. It’s not just their financial knowledge that enables them to accomplish this, however; it’s an specialized set of abilities.
Deal execution is the key to turning a proposed acquisition into a closed deal. This includes everything from identification and screening through final negotiations and integration. Investors need to be able to manage the entire process, that could include an investment approval gated to the investor along with a multi-staged due-diligence process and a 100 day operating plan. Insight into the global capital markets is one important factor in facilitating this however there are various other factors that constitute an effective execution toolkit which include a clear plan, adequate funding and incentivising and a focus on culture and sheer competence.
Be aware that the other party is feeling the same emotions that you are. It’s easy to let perceived annoyances and misunderstandings undermine negotiations. It’s important to enter negotiations with an open mind to concessions, but be sure that you provide something in return. This could take the form of additional assets or a more flexible deadline, or even a commitment to working together over the long term.
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