Unique Challenges Can Arise in Private M&A Deals: Panelists

Mergers and acquisition deals involving private companies can present unique challenges, panelists at a National Association of Corporate Directors conference said Sept. 19.

It is important to keep the due diligence process fact-based, said Brian Pitera, a principal at Grant Thornton LLP. Whether on the buy or sell side, “emotions can get high,” especially when a private company is involved, he said.

Sellers in closely held entities can have an emotional attachment to the company and worry about what will happen to it after the sale, Pitera said. On the other side of the transaction, buyers anxious to get a ...