Avoiding Common Pitfalls in Today’s M&A Market

It’s been an active year for M&A in the events industry. The year began steadily with 12 deals in the first half, followed by a surge of at least 10 deals per month from July through September. Buyers continue to show strong interest in high-growth, niche sectors and market-leading events. They are also expanding into adjacent industries to build broader ecosystems and tap into complementary audiences. Luxury experiential events targeting affluent enthusiast communities remain particularly attractive. In addition, cross-border transactions are becoming increasingly common as buyers pursue global expansion.

While buyer appetite for quality assets remains strong, due diligence has become more rigorous than ever. We’ve identified several recurring pitfalls that sellers must navigate carefully to maintain buyer confidence throughout the sales process.

Poor Data

In event M&A, data quality and organization are critical. Buyers expect sellers to maintain clear, consistent records of sponsors, exhibitors, attendees, and revenues – ideally housed in a unified database. Without this, it becomes difficult to assess customer retention, event performance, and growth drivers, making accurate valuation challenging.

As buyers spend more time scrutinizing businesses during due diligence, data quality has emerged as a key determinant of deal success. Well-organized data not only supports valuation but also reveals growth opportunities for buyers. Sellers who take the time to consolidate and clean up their data before entering the market will be better positioned.

Not Meeting Growth Expectations

Buyers today are heavily focused on growth and are willing to pay a premium for it. One of the most common setbacks in event M&A occurs when a business fails to meet its growth projections. This may result from overly optimistic forecasting or shifting market conditions.

Whatever the cause, the gap between projected and actual performance undermines buyer confidence and often leads to valuation disputes. Sellers should adopt a conservative approach to forecasting, track their sales performance closely, and be prepared to explain any deviations from projections. This is where having an experienced M&A advisor is invaluable – someone who can manage the process, communicate effectively with buyers, and allow the seller to stay focused on running the business.

Lack of Financial Clarity

Many organizers lack a clear understanding of profitability at the individual event level. Shared costs across shows or venues, handshake deals, or unrecorded bartered services often obscure true financial performance. These gaps can make it difficult for buyers to assess profitability accurately.

Organizing financials before launching a sales process, including proper event-level accounting and transparent cost allocations, can greatly streamline due diligence. Conversely, unclear or incomplete financial reporting raises red flags about the reliability of the company’s overall financial picture.

Preparing for a Sale

Selling a business or event portfolio is a process, not a single transaction. By addressing these pitfalls early- organizing data, aligning projections, and clarifying financials – sellers can move through due diligence more efficiently and maintain buyer confidence from start to finish.