Weโve all seen the headlines: Deal Announced.
And then, months later: Deal Terminated.
Most people point to price disputes or market conditions as the reason deals fall apart. In reality, those are usually the last excuses givenโnot the root cause.
After leading more than 100 transactions across 13 countries, I can tell you this with confidence:
Cross-border M&A deals donโt fail because of numbers alone. They fail because of misalignment, mistrust, and unprepared sellersโoften long before diligence even begins.
In my recent conversation on This Is M&A, we unpacked the early warning signs that experienced buyers spot almost immediately. These red flags donโt show up in financial models, but they absolutely influence whether a buyer stays engagedโor quietly walks away.
Red Flag #1: โWeโre Globalโโฆ With No Real Global Strategy
One of the fastest ways to lose credibility in a cross-border deal is claiming international scale without demonstrating operational depth.
Buyers hear โweโre globalโ all the time. What theyโre really listening for is:
- How do you manage regulatory differences?
- How do you operate across time zones, cultures, and legal systems?
- Where are decisions actually madeโand by whom?
If a seller canโt clearly explain how cross-border complexity is handled today, buyers will assume the risk lands on them tomorrow. And riskโespecially unfamiliar, cross-border riskโkills momentum fast.
Red Flag #2: Assuming the Buyer Values the Business the Same Way
Sellers often fall into the trap of believing strong financials speak for themselves. Revenue growth and EBITDA matterโbut they donโt tell the full story.
Strategic buyers, in particular, are asking a different set of questions:
- How does this asset fit into our long-term growth strategy?
- Does it strengthen our geographic footprint?
- Will integration accelerate or slow us down?
One of the biggest mistakes I see is sellers confusing financial value with strategic value. You can have perfect numbers, but if the buyer doesnโt see a clear strategic fit, premiums disappearโor the deal never closes.
Red Flag #3: Waiting Until Diligence to Get Organized
In cross-border M&A, preparedness is a signal of quality.
Teams that scramble to organize documents, clarify ownership structures, or explain operational processes after LOI send an unintended message: Weโre not ready.
Experienced buyers interpret this as:
- Higher execution risk
- Potential governance issues
- Future integration challenges
The strongest sellers show up to early conversations already organized, already aligned, and already thinking like a buyer. That confidence builds trust long before diligence formally begins.
Why Trust Is the Real Currency in Cross-Border Deals
Cross-border transactions inherently involve more unknownsโcultural differences, legal frameworks, communication styles, and geopolitical considerations. Because of that, trust becomes the most valuable currency in the deal.
Once trust erodes, buyers donโt usually argue. They disengage.
They slow responses.
They โrevisit priorities.โ
They quietly move on.
Final Thought: Preparation Is a Competitive Advantage
Whether youโre a founder considering a future exit or a corporate development leader navigating international growth, the takeaway is simple:
The deals that close arenโt just well-pricedโtheyโre well-prepared.
They show strategic clarity, operational maturity, and an understanding of how buyers actually think across borders.
Thatโs exactly what we dive into in this episode of This Is M&A.
๐ง Listen here:
๐บ Or find it on Spotify, or Apple Podcasts
If youโre serious about cross-border growthโor avoiding deal-killing mistakes before they surfaceโthis conversation is worth your time.
