- Be Objective and Keep an Open Mind
One of the most important factors when handling a transaction is to be objective and keep an open mind throughout the process. Davidson suggests not ever allowing your emotions with either the negative or the positive information to dominate your assessment. - Don’t Leave Questions Unanswered
Davidson suggests that when a red flag presents itself, you should never ignore it. Leaving questions unanswered, no matter how small, could end up costing you much more in the long term. Be proactive and follow through to investigate and resolve any cautionary warnings so you can clear your doubts in putting the issue to rest. - Consider the Impact on the Valuation of the Deal
Always keep your eyes wide open, says Davidson. If some negatives do pop up during the assessment of a transaction, fully consider how they will affect your deal and whether there should be a change in pricing or other terms of the deal. When due diligence shows that there is a concern, follow it through to the end and adjust your deal accordingly. Don’t be afraid to change, face the issues head on and change the deal’s pricing and structure if need be.
