Mid-market deals don’t deliver

Nearly all of mid-market management buy-outs fail to fully deliver on their
pre-deal expectations, according to research conducted by Grant Thornton’s
operations and post-deal services team.

The firm found this to be the case in 96% of mid-market MBOs with the
appointment of underperforming management cited as the most common factor
contributing to a deal not delivering its long-term potential.

‘It is not hard to see why management due diligence is growing in
popularity,” said Grant Thornton partner David Axon.

He said the problem is that it is impossible to provide guarantees that
management can deliver the business plan.

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