I had to share bad news about a client with my wife and business partner last night.
He moved the goalpost.
Again.
It’s shitty for the other party in the deal. I feel bad for them.
Their carrying costs have been substantial because of the way they raised capital to be at the table.
They’ll still come out ahead, but everyone is grumbling in their corner while getting through the traps of closing a deal.
“How do you stay so upbeat?” my wife asks me.
I told her, “Every deal goes into cardiac arrest at least three times:”
- Failure to understand each other. Like the word “bad” can mean “good” or “cool,” – Clients hear “Term Sheet” or “LOI” and hear “I’m approved!” or “Sold!” when the process has only started.
They get upset or disappointed when I re-show them the path to victory I had told them about in our initial meeting.
- Urgency – Everyone has seen the coffee mug or sign that says, “Lack of planning on your part does not constitute an emergency on my part.”
Most parties at the deal table have different timelines and expectations that do not match up.
In this case, the seller has a bit of remorse and difficulty letting go of a business he has run for nearly 50 years.
- The Details are Boring – The detailed checklist I sent several months ago and reminded the parties about every few weeks gets ignored.
When the rubber hits the road, it isn’t unusual for someone to say something unprofessional, even slanderous.
The trick here is to be a man of steel and let it slide.
Smile and stay the course.
I reminded my wife one of the main reasons I do this is because she is at my side.
What a privilege it is to have your ‘ride or die’ partner next to you as you’re administering CPR to a deal that will pay for the life you want to live.
How do you keep your deals alive? Drop it in the comments!
