M&A deal risks rarely look dramatic at first. They show up as “we’ll get it next week” answers, missing schedules, and leadership teams who cannot agree on what success looks like. In the printing and packaging industry, those small gaps turn into delayed financing, stalled diligence, and messy negotiations fast.
Most deals do not blow up because one party lies. They derail because the real operating story is not documented, not measured, or not aligned across finance, sales, and production. If you are an owner or senior leader, your job is to surface the problems early, price them correctly, and decide what you will fix before close versus after.
When the numbers “work,” but the story doesn’t
Plenty of M&A deal risks start with financials that look fine in aggregate. Then diligence digs in and finds that the earnings quality depends on assumptions nobody can defend.
- Earnings that rely on add-backs. If the deal needs a long list of “one-time” adjustments, expect the buyer and lender to haircut EBITDA.
- Customer concentration and pricing drift. A few big accounts, expiring contracts, or years of underpriced work can change value quickly once reviewed line by line.
- Working capital surprises. Slow-paying customers, obsolete inventory, and custom WIP can lead to a purchase price adjustment that feels like a last-minute penalty.
- Capex and maintenance reality. Deferred maintenance and aging presses do not stay hidden when site visits begin and production data gets requested.
Operational gaps that buyers can’t underwrite
If leadership cannot explain how the plant runs, buyers assume it runs on heroics. That is one of the most common M&A deal risks in manufacturing-based businesses.
- Process variation by shift or site. Inconsistent setup, make-ready, and QA practices show up as scrap, rework, and missed service levels.
- Data that does not reconcile. If the ERP, estimating, and financial statements do not tie out, diligence becomes slower and more expensive.
- Equipment rationalization not addressed. Redundant or underutilized assets create confusion about true capacity and the real margin on each product line.
People and integration risks nobody budgets for
Deals get signed by executives, then succeed or fail with supervisors, sales reps, and planners. Ignoring that creates M&A deal risks that show up after the ink is dry.
- Key-person dependency. If quoting, color, or customer relationships sit with one or two people, retention plans and backups must be real, not implied.
- Role clarity and decision rights. Post-close confusion about who owns pricing, scheduling, and purchasing leads to churn and margin leakage.
- Culture clashes in execution. Different standards for safety, quality, and communication turn integration into a slow bleed.
As volatility persists, the lowest-risk path is…
As volatility persists, the lowest-risk path is to treat M&A deal risks like operational issues you can measure and manage, not legal problems you can negotiate away. Leaders who prepare clean data, defendable earnings, and a credible integration plan tend to move faster, face fewer price retrades, and keep momentum through close.
Talk with CFR before diligence gets messy
If you are buying, selling, or planning for a transaction, CFR helps leaders reduce M&A deal risks through deal readiness, valuation support, diligence execution, integration planning, and practical staffing support when your team is stretched. Start a direct conversation here: https://connectingforresults.com/contact/
