70-80% of M&A deals fail. Here’s why most Western approaches are missing the mark while Middle Eastern and Far Eastern strategies succeed.
If you’re considering selling your family business, that statistic should concern you. Only 1 in 5 deals actually succeeds.
The Middle East tells a different story. Deal volumes increased 19% in H1 2025 while global volumes declined 9%. That’s a 28% differential.
Why the gap?
→ Robust sovereign capital and regulatory reforms
→ Long-term cultural values over Western short-termism
→ Strategic partnership financing encouraged by Sharia Law
→ Focus on digital infrastructure and renewable energy
Far Eastern investors take an even more careful approach. Chinese investors often start with 5-10% stakes, investing more as success metrics and cultural harmony prove out.
Confucian values prioritise employee wellbeing and long-term stability. They kick the tyres before committing deeply.
Western deals fail because:
→ Financial and legal due diligence only
→ Commercial NFDD is skipped to speed up deals
→ CEOs and M&A consultants rush for commission
→ No early collaboration with potential buyers
AI tools like Midaxo can now enable rapid commercial diligence without slowing deals.
Better preparation matters. Building a strong management team early and considering MBO options gives you more control.
At Transaction Focus, we worked with CBBC helping Chinese companies make European acquisitions. We saw firsthand how thorough NFDD and cultural consideration drove success.
Truedil was founded to promote transparency and better commercial due diligence in M&A.
Your business deserves better than a 20% success rate.