The recent election season is over. Of course, the next cycle has already started. No rest for the weary, and we are the weary. So below are three things politicians can learn from the M&A industry. We’ll assume they can’t change their lack of integrity and ethics or the ability to tell the truth.
Background – in Antigua, where we do projects in the schools, my friends tell me there is wide support for leaving the British Commonwealth and being an independent country. However, each political party won’t do it if they think the other party supports it. In the US we have something similar and it’s with immigration. As per the Wall Street Journal, November 19, 2020, there’s agreement our immigration system needs fixing and yet both parties “have made it clear that they’d rather see the border crisis continue that give ground to their political opponents.”
- Give and take – Unlike in the above examples, I’ve figured out in the buy-sell world rarely is the seller’s asking price the lowest number they’ll take and rarely is the buyer’s first offer the most they’ll pay. There’s always give-and-take. Our country was founded via give-and-take but now it’s my way or the highway (from both parties).
- The price isn’t everything – I’ve been involved with a few transactions where the highest offer didn’t get the deal because the seller felt another buyer was the best fit. There’s also how it gets paid, when it’s paid, are there contingencies, how long does the seller stay working, and often, they want their employees to have job security.
- A win-win deal is a must – It’s not executive orders from whomever the president is, going back and forth every four-year cycle. If either side in a buy-sell deal issues ultimatums like politicians do, the other side will probably move on.
If the objective is progress and success, the egos have to be checked and compromise is necessary.
“It’s not harmless to be pleasing and self-effacing; it costs too much to bury yourself so that other people will approve of you.” Genna Davis