This past month, I recently ended the negotiations on one acquisition target. I had invested a significant amount of time and energy in getting educated on the business and industry, and developing a relationship with the seller/management team. After multiple discussions, my investment committee/advisors and I were able to come to what we believed was an mutually-attractive valuation for the target company given its risk/return profile. This was an off-the-market deal and we were the only buyers considering the company at the time. As we were moving from IOI to LOI, the company had won a large customer contract that would nearly double its revenues and earnings within the next three years. While this was a very positive outcome for the company, it complicated our investment thesis and valuation of the company. As expected, the sellers sought a significantly higher purchase price. We had to make a tough decision and walk away. What are some principles and parameters that you are applying to ensure capital discipline?