Why some deals stall - and others succeed

The Secret Investor shares some insights on what works and why

Hello Rainmakers,

Welcome back for more diaries of a secret investor!

This week he looks at the human factor behind why some deals have all the right ingredients to succeed.

Hope you enjoy this. Rainmakers subscribers get (at least) two unique pieces a week, but also full access to our back catalogue of investigations, scoops, and insights, including updates like this one from The Secret Investor, interviews with entrepreneurs, and the leaders from VC and PE investors like Endless, and River Capital, Foresight, Mercia, Puma and LDC.

While the last column spoke about a quiet and subdued summer market, it feels like things have sprung into life a little since then.

It’s probably worth me sharing a few thoughts on why some deals happen, and why others never seem to get out of the traps.

One big factor that seems to be affecting a few deals - either to slow them down, or stall them altogether in recent months, probably more so than ever before, has been politics, government policy and public sector spending.

Right from NHS budgets impacting suppliers and procurement, to social care operators, apprenticeship and training providers, carbon efficiency / eco work and funding now drying up… there have been deals fast tracked and slowed down, stalled completely and even business suffering or failing completely as a result of these factors.

And as far as I can see it’s getting worse. I can’t remember a time where the public sector and overnight shifts in policy have had a bigger impact on high growth, exciting businesses and M&A activity. Maybe that’s reflective of the political world we live in – and the businesses and beneficiaries at the front of the queue when it comes to the government handouts. Unfortunately though, if you build a business around those gaps and loopholes, it may last longer than it should but at some point someone will call it out and the gap will be closed.