I've seen this in printing and banking. The cultures have to mesh. Owners who stay on, even at the buyer's request, need to transition to a new role and get comfortable with the fact that they're not running the entire show anymore. Many issues can come to light during this exploratory phase, often involving real estate ownership, leasing of real estate and environmental issues. Receivables must be in order, and consolidators want to see a diversified customer base.
Litigation can also kill a deal.
Sellers can't have bankruptcy liens, any litigation pending or inventory problems. And there are still concerns with Y2K. Buyers want to make sure all computer systems are OK, and they'll check the integrity of a seller's software programs. McCague believes the vast majority of mergers and acquisitions work out well. The only disgruntled sellers are those who made bad decisions.