The Secret To Sealing An M&A Deal

Selling a business is not just a financial transaction. It’s often a highly emotional process that carries challenges for both sellers and buyers.

After all my years of deal-making, I am often asked, “What is the secret to a successful deal?”

My answer may surprise you.

Think Like The Other Party

It’s not about killer instinct or being smarter than other people. It’s not even about the megatrends going on in the market.

The secret to a successful deal is to be able to see everything from the other person’s perspective. Buyers need to put themselves in the shoes of the sellers. Sellers need to put themselves in the shoes of the buyer.

If there’s a superpower in M&A, it is empathy. Why empathy? Because it will allow you to understand the other party’s goals, sensitivities and perspectives.

Imagine the insight you would have prior to a deal negotiation if you understood with perfect clarity the other side’s feelings, thoughts and perspective, the other party’s past and present experiences that led them to a deal with you. That would be amazing, right?

The more that buyers and sellers understand what’s important to the person across the table in a negotiation—not just the numbers but many other issues as well—the more likely the deal will be to close…

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