Q&A: Inside DLI’s Latest M&A Deals

In our webinar held on 10 April 2025, Inside DLI's Latest M&A Deals, our joint CEOs Andrew Bahlmann and Rick Grantham addressed questions from business owners on some of the most pressing issues in the M&A world. From the impact of global political events to the necessity of a well-structured deal and their critical role of finding the right buyer, their discussion looked at the strategies that drive successful transactions.

In the Q&A below, we’ve compiled the key questions raised by attendees along with the valuable lessons and insights shared during the session.

Q1: How has the political climate, particularly events like Trump’s election, impacted the M&A market?

A1: Global political events have indeed created widespread market uncertainty and ripples. Despite these challenges, the M&A space in South Africa has shown resilience. Buyers are now more aware of the risks associated with concentrating investments in one market and are diversifying internationally. For instance, inquiries from overseas received by DLI during live transactions highlight how global diversification is being actively pursued.

Q2: What is the importance of acting quickly in deal-making?

A2: Time is a critical factor in deal-making. Once a transaction is initiated, swift action is essential because market conditions can change abruptly. A quick, focused approach minimises the risks associated with uncertainty and helps maintain momentum throughout the entire process.

Q3: Why is finding the “right buyer” more important than just any buyer?

A3: The right buyer is defined not just by the offer price but by strategic alignment. An ideal buyer brings a shared vision, cultural fit and growth strategy that translates into enhanced deal value and operational stability. This alignment often leads to significantly better offers and smoother integration after the deal closes.

Q4: Can you give an example that illustrates the role of tenacity in closing a deal?

A4: Persistence plays a vital role when challenges arise, such as complex accounting issues or demanding due diligence processes. One example involved a well-known consumer brand where continuous support and relentless effort helped overcome hurdles like stringent warranty terms and regulatory scrutiny, ultimately leading to a successful transaction.

Q5: Has DLI ever had to fire an acquirer during the process? If so, why?

A5: Yes, there have been instances when acquirers were dismissed for failing to adhere to previously agreed-upon terms or for not committing the necessary resources and focus required during due diligence. Removing such parties ensures that only fully engaged and well-aligned buyers remain in the process.

Q6: How does the national political climate affect the perception of businesses by international buyers?

A6: Although local political issues can sometimes negatively influence perceptions, international buyers often have a broader perspective and strong connections with the market. Their existing ties and understanding of South Africa’s strengths, such as efficient manufacturing, quality engineering and competitive costs, can mitigate negative headlines and reinforce confidence in the business environment.

Q7: What role does deal structure, including the use of debt and earnouts, play in closing successful transactions?

A7: Deal structure is fundamental in addressing issues like succession planning and risk allocation. While most deals avoid using debt, there are situations, particularly in partial sales, where carefully structured debt and earnouts can balance risk and reward. The key is to ensure that any financial leverage does not unfairly shift risk to the seller, and that terms are negotiated to protect both parties’ interests.

Q8: What are the primary attributes that make a business attractive to potential buyers?

A8: Businesses that show robust growth potential and solid profit margins tend to attract buyers. Transparency in financial reporting and strong operational controls also add significant value, as they reduce uncertainty. Additionally, companies with well-optimised balance sheets, often with low to no debt, and recurring revenue models are generally seen as more attractive investments.

Q9: When is the right time for a business owner to sell?

A9: There is no universally “perfect” time to sell; rather, readiness is determined by thorough preparation. This includes having accurate financials, efficient operations, and a compelling growth strategy in place. Generally, the process from preparation to deal closure can take 9 to 15 months, so planning ahead is essential for timing a successful exit.

Q10: What final advice do you have for business owners considering an exit?

A10: Exiting a business is a complex process that requires detailed planning and strategic insight. It is crucial to engage experienced advisors who can support the deal from start to finish. Maintain the discipline to walk away if the terms do not align with long-term objectives, and ensure that there is clear alignment between the buyer and seller. Ultimately, a well-structured transaction that addresses both strategic and operational factors is key to unlocking maximum value.

We hope these key takeaways help you better understand the complex dynamics of deal-making and inspire you to explore opportunities that align with your long-term growth objectives.

If you'd like to get the full context and examples behind each Q&A, then watch the webinar recording by clicking here.

About Deal Leaders International

Deal Leaders International (DLI) is a boutique M&A advisory firm specialising in helping business owners and executives, with a business EBITDA between R20 million and R300 million per year, engineer their growth-to-exit journey.  

We go beyond traditional advisory services, partnering with our clients to design, execute and optimise strategies that achieve maximum value when selling their businesses.  

Our mission is to empower our clients to achieve outcomes that align with their financial, professional and personal goals while positioning their businesses as highly attractive to the right buyers.  

As the Africa representative of the Pandea Global M&A Network, we offer our clients both local and international expertise and experience. With 69 offices in 34 countries, and over 2500 successfully completed transactions with a combined deal value over €30 billion, DLI offers deep market insights, practical expertise and a results-driven approach to prepare and successfully execute on business growth and exit strategies.