We should look at why they don't close. How often is it because the seller misrepresented their product/company? And don't forget information asymmetry - theoretically seller knows 100% and buyer knows very little. TBH I find it amusing where people take that kind of risk at all - let alone paying for the trouble. It reminds me JPMorgan's acquisition of Frank - no wonder JP did all kinds of due diligence on this stuff, it is extremely hard to differentiate forgery from reality without being an insider.