What happens when leadership in a family-owned business changes hands—but no one knows exactly how, when, or to whom? According to PwC’s 2023 Family Business Survey, only 34% of family businesses have a formal succession plan in place, even though 76% expect to pass ownership to the next generation. That gap poses a risk to the entire enterprise.

Mergers and acquisitions involve high-stakes decisions that directly impact ownership, valuation, and long-term business outcomes. At the centre of every successful mergers and acquisitions (M&A) transaction is the negotiation phase, where the deal structure, purchase price, and risk allocation are determined. This stage shapes the final agreement and influences whether both the buyer and seller achieve their objectives. Strong negotiation tactics and a clear strategy are essential. Without them, deals can collapse, terms may become unfavorable, or parties may walk away with diminished value.

What causes most small business sales to fall apart after an offer is accepted? According to data from Axial, nearly 70% of failed transactions break down during due diligence. And the reasons are usually preventable—disorganized financials, misaligned expectations between buyer and seller, or trust issues that surface once the details come into focus. It's not that buyers aren’t interested or that the timing is off. More often, it’s that sellers aren't fully ready for what serious buyers need to see when they start digging into the numbers and operations.

In an acquisition, goodwill is the excess of the purchase price over the fair value of the acquired company’s net identifiable assets (both tangible and intangible). It represents elements such as brand reputation, customer loyalty, and proprietary advantages that contribute to future earnings but cannot be individually measured or separately recognized as distinct assets. While goodwill can significantly impact the final purchase price of a business, determining its true value is often complex. Overestimating goodwill can lead to inflated valuations and potential write-downs, while undervaluing it may result in leaving money on the table during negotiations.

After a period of fits and starts, the landscape for mergers and acquisitions appears poised for renewed momentum in 2025. Recent data points—from increasing large-deal volumes to evolving macroeconomic conditions—offer optimism for business owners considering a sale or valuation assessment. Yet, amid the encouraging signs, the market continues to flash mixed signals. Understanding these nuanced shifts is critical for those aiming to capture optimal value.