After being burned by an acquisition where key customer programs were ending, Milliken now requires a "customer awareness study" for every deal. This involves third-party interviews to validate the target's brand strength, market perception, and any hidden customer-related risks before closing.

A deal failed because the acquirer rigidly insisted the target switch from Macs to PCs for compliance reasons, without exploring creative solutions. This highlights how a lack of flexible problem-solving on operational details can escalate into a deal-killing issue, masking deeper cultural misalignments.

Private equity firms leverage industry advisors for more than just expertise. A crucial, often overlooked role is to provide sellers, particularly founders, with a sense of security. The advisor vouches for the PE firm's reputation and intentions, which can be critical in getting a deal over the line.

After working out 22 distressed joint ventures during the GFC, the key lesson was that partner quality dictates outcomes more than the deal itself. When things go wrong, good partners collaborate to find solutions, while bad partners create conflict, making even a good deal untenable.

Getting burned once in a partnership can make you risk-averse, closing you off from essential collaborations needed for growth. The key is to attribute the failure to the other party's character and continue to seek out reputable partners, rather than letting fear dictate your strategy.

The buying committee is larger than just the key contacts sales engages. Hidden influencers, particularly in procurement, play a crucial role. If they have no brand awareness or trust in your company when the deal reaches their desk for final approval, they can single-handedly block it.

Successful, long-term vendor relationships are built on cultural alignment and a shared vision, not the lowest bid. Intensive due diligence should focus on finding a partner who is transparent, trustworthy, and willing to innovate and grow with your organization. A mismatched culture will lead to revisiting the selection process within a year.

Surprises are best uncovered during due diligence. Finding them after closing, even if they seem beneficial (like an un-negotiated supplier contract), indicates flawed homework and disrupts the integration plan, damaging credibility with stakeholders.

If a deal team says, "don't bring the integration people in because they'll mess up the deal," it is a massive red flag. This indicates they are likely sugarcoating problems and painting an overly optimistic picture for the seller, virtually guaranteeing post-close surprises and failure.