Mourning a deal
May 26, 2022
by a searcher from Gustavus Adolphus College in Minneapolis, MN, USA
Does anyone else feel sad when they pass on a deal they really like?
I am struggling to let this deal go. I know it’s not the right deal but I feel like I’m grieving.
I think it will be the right deal for someone else just not me.
from Columbia University in New York, NY, USA
Not sure if this is originally attributed to this article: https://bit.ly/3M2IiHc but I agree with the sentiment. Every deal dies 3 times before it's done.
We've noticed that sellers are just getting this journey started (whereas a seasoned buyer can have 1-3 years of experience looking at deals). As a result, they need to go to market and learn a bit. The problem you are offering to solve still exists (and in the good deals, it's rarely financial). That seller will seek another route. In cases where the "right" buyer includes a very small number of operators, you are likely to see them come back around.
from London Business School in Johannesburg, South Africa
If 3 months ago you'd have said that I was having a bad day because i'd passed on my first serious deal, then i'd have been delighted. Need to remember that.
There's only one thing worse than having to pass on a good (but not great) deal you've worked hard on, and that's not having a good deal to pass on at all!