M&A Activity: The Invisible 'Tuck-in' Deals

Cohen cautions that one mistake an owner sometimes commits is running the company as if he/she is going to sell it. Delaying capex, new technology and not reinvesting profits back in the business are tell-tale signs. Another mistake Cohen sees is growing top-line sales at the expense of profit margin, either through lowering prices or overpaying for tuck-in acquisitions.