I thought it would be worthwhile to share a note on an important aspect of deal-making. If you’re at the end of a deal and everyone is getting frustrated, it’s crucial to take a step back and assess the situation. What I mean is, if you’re in the middle of a transaction and trying to get under contract, sometimes minor squabbles can escalate, having an outsized impact on decision-making. People get frustrated and emotional, which can derail the process.
The best dealmakers have the ability to pause and ask themselves: Have I let my ego get in the way? Have I become overly emotional? Am I trying to win on an issue that doesn’t actually matter in the grand scheme of things?
Make sure you’re not letting emotions blow up a deal that otherwise makes sense. There are times in a transaction when you might realize you’re not on the same page or things aren’t going to work out as planned. This realization might come after attempts to work things out in the Asset Purchase Agreement (APA) or the Stock Purchase Agreement (SPA). In such cases, it might be necessary to step away. But if the issue is minor, check yourself: Am I letting my head get the better of me? Should step back, take a breath, and consider whether this issue truly matters?
Business transactions often involve stress and tension. When trying to get under contract, these emotions can flare up. However, once you’re under contract, you might look back and wonder why you got so upset. Sometimes, tabling an issue to be addressed later in due diligence can help you move forward. Once the contract is signed, the trivial matter might seem inconsequential.
In summary, be mindful not to let your emotions or ego interfere with closing a deal that is beneficial in other respects. Remember, the goal is to achieve a successful transaction, not to win every minor battle. And as they used to say on TV when we were kids: “That’s one to grow on.”
