Walk in My Shoes

Let’s start with a hypothesis…

“Good deals aren’t born, they are finessed…” Author unknown

I recently came across this gem, and it struck a chord with me. I have talked about what makes a good deal in the past, but this statement truly sums it up. A deal is just an agreement in the present with an assumption of payoff in the future. If a deal is born in the woods with no one around, is it really a deal or is it just some words on a paper? Sure, “technically” it is a transaction but the assurance of future prosperity, as a result of the deal, is not guaranteed, it is finessed into existence.

In a deal, everyone is trying to gain clarity and maximize the future impact on their organization. It doesn’t matter whether you are the buyer, seller, banker, HR, Corporate Development, the acquiring business unit or even the candlestick maker. Most folks have good intentions. And this includes the impacted employees too. But good intentions are not enough.

Everyone has different motivations, perspectives and desired outcomes of a deal. The dynamic tension between the various parties inevitably ensures that issues will arise. And those closes to the deal are expected to navigate the turbulence, thread the needle and find common ground.

A successful deal depends on your role in the transaction and your perspective. Are you the seller trying to shed an under-performing aspect of your business? Are you the buyer that is hoping that the additions of the deal will buoying your business? Are you the support functions just trying to juggle doing your day job while contributing to your current employer? Are you the banker trying to get paid? Or are you an employee just trying to make sense of it all?

Any way you slice it, it is easy to see there are competing interests. And the goal in most deals is to navigate all those different motivations in such a way that everyone comes away from the event feeling like they achieved what they need to.

Best laid plans are simply that. We have talked about planning in the past and nothing is more important. However, after planning and execution comes pivoting or finessing. Experienced deal professionals know that, often times, things don’t necessarily go as planned and emotions can run high. It is up to those closest to the deal to navigate those turbulent waters, especially when people are involved.

Folks don’t expect you to have all the answers in the beginning, though that is optimal. People expect to be treated fairly, told what is known (at the time) and given some clarity around when their additional questions or concerns will be addressed. This is a fine line to walk, especially if you don’t have much clarity, which is often the case. The truth is, the faster you can move people through the chain curve and get them refocused on business as usual the better.

Have you ever had a perplexing interaction with someone? Often times, in those cases, it is helpful to remind yourself that it is likely them and not you. Maybe you just happened to be there and became the unsuspecting target of their emotional reaction. This is sage advice in a deal. You are not necessarily dealing with a rationale response; you are dealing with an emotional one. It’s a good idea to remind yourself of this when you find yourself face-to-face with a situation that seems unwarranted.

This phenomenon plays itself out all the time during deals, across many different stakeholders, including most commonly the employee population. And, when those instances arise, it is important to remind yourself that is likely not about you. However, that doesn’t mean you don’t have an obligation to address and potentially deescalate the situation.

“There is nothing permanent except change” Heraclitus

Often times, the company or business unit is resistant to change. Even though they may be driving the transaction the impact of change is often underestimated. The merging of two cultures, two operating models, two go-to-market strategies and so much more almost guarantees a level of sacrifice and change by everyone involved. A deal professional must not only deal with the impacted employees, but also play counselor to the acquiring organization.

The reality is most people don’t like change. However, we are surrounded by constant change. The human fight or flight instinct is a strong one, which is why we resist things that are unfamiliar. That instinct has allowed humans to survive and flourish over thousands of years. But, at times, our instincts to resist something that is unfamiliar, especially in the context of business, leads us astray.

As deals professionals we must keep all of this in mind, while at the same time focusing on the task at hand, getting the transaction across the finish line. The combination of the two is no easy task, but it is the one you signed-up for when becoming involved in a deal.

“The way to get started is to quit talking and begin doing” Walt Disney

So, less talk and more walk…

Until next week - Stay strong, stay focused, stay sane and stay the course…__________________________________________________________________________