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Most deals don’t die because the business is “bad.” They die because diligence reveals risks, confusion, or surprises the buyer didn’t underwrite, and confidence breaks. Due diligence is designed to surface exactly that: debts/liabilities, problem contracts, litigation/regulatory risk, intellectual property issues, and other items that can change the deal economics or terms.   Below are the most common failure points  we see, plus a founder-friendly prevention plan. 6 reason

“Should we raise VC?” is usually the wrong first question. The better question is: what problem are you solving right now , runway, growth acceleration, acquisitions, working capital, or founder liquidity, and what trade-offs are you willing to accept  (dilution, repayment obligation, covenants, governance, speed, certainty)? This guide breaks down the three most common “growth capital tools” founders consider: Private Credit , Venture Debt , and Venture Capital (VC) . The pl

Most deals don’t fall apart because the business is “bad.” They fall apart because, right before or during diligence, buyers discover risks they didn’t price in. And when that happens, one of two things follows: The buyer asks for a price reduction , earnout , or bigger holdback , or The deal slows down, trust drops, and momentum dies Here are five value killers we see show up repeatedly — often late  — and what founders can do about them. 1) Customer concentration (and weak

Founders often ask, “What multiple can I get?” But buyers don’t start with a multiple. They start with a question: “How confident am I that this performance will continue, without surprises, after I buy it?” That’s why two companies with similar revenue can sell for very different outcomes. Buyers price durability, transferability, and risk . Premiums come from what reduces risk and increases upside. Discounts come from what creates uncertainty. Here’s what that looks like in

Founders often think valuation works like this: “If I build a DCF model, I’ll know what my company is worth.” DCF (discounted cash flow) is a useful tool — but it’s rarely the tool that decides what a buyer will actually pay. In real M&A, valuation is not a single number from a spreadsheet. It’s a negotiation shaped by three forces: Market pricing  (what comparable businesses are trading for) Buyer logic  (what this asset is worth to them ) Risk  (how much uncertainty the buy

A lot of founders think “exit readiness” is something you do when you’ve decided to sell. But the founders who build the strongest companies often take the opposite approach: They build a business that could be sold at any time — even if they never sell it. Why? Because a sellable business is usually: Easier to scale Less stressful to run More resilient in downturns More attractive to capital and partners Less dependent on the founder In other words, “sellable” is just anothe

Founders often treat “exit” like a single decision: sell or don’t sell. But in reality, there are two common paths to liquidity and growth — and they’re very different: Recapitalisation (Recap):  bring in an investor or strategic partner, take some liquidity and/or growth capital, and keep building. Full Exit:  sell (most or all) of the company and step away or transition out. Neither is “better.” The right answer depends on what you want next — for your business and for your

For many founders, “exit” sounds like one thing: selling the whole company and stepping away. But there’s another path that’s becoming more common, especially for founders who still love the business and see more growth ahead: Partial liquidity. You “harvest” some value today, without walking away  tomorrow. What is partial liquidity? Partial liquidity usually means a founder sells a portion of their shares  (often called a secondary sale ) to an investor, while keeping meani

Most founders avoid the word “exit” because it sounds like you’re giving up. But planning an exit early isn’t about leaving. It’s about building leverage , so you have choices when it matters. A founder-friendly way to think about it: Exit planning = option planning. Options to fuel growth, reduce risk, bring in the right partner, or take liquidity — without being forced into a rushed decision . The real risk isn’t selling. It’s waiting until you have to. Founders usually sta

When founders hear the word “exit,” most people picture one thing: selling the company. But a founder-friendly view is different: Exit isn’t an event. It’s a strategy. A strategy to create options, fuel growth, harvest what you’ve built, and de-risk your future, whether or not you ever sell the whole business. If you only think about exit when you’re tired, pressured, or running out of time, you’re not planning an exit. You’re reacting to one. The real goal is optionality Opt