What to do when a buyer backs out

Description

Abstract: M&A transactions can fail to cross the finish line for a variety of reasons. A seller may not be able to substantiate earnings to the buyer’s satisfaction, or the buyer may discover that synergies for long-term value just aren’t there. Whatever the reason for a deal’s demise, a jilted seller can become financially and operationally stranded. It needs, as this article discusses, to act quickly to preserve its future. Sellers must consider negotiating with the buyer or, possibly, litigation, and they need to communicate with their important stakeholders. (Updated 7/31/12)