Fight For Last Mile

Shaan Puri shares insights about the importance of pushing through the final stages of M&A negotiations, even when exhausted. He emphasizes that the last portion of deal value is often left on the table due to fatigue, but it's crucial to maintain resolve during these final moments.

• The Last Mile in M&A Negotiations:

  • Final 1-5% of deal value is often decided in the last negotiations
  • Both parties are typically exhausted at this point
  • Most people want to just "get the deal done"

• Psychology of Final Negotiations:

  • Fatigue makes people willing to concede value
  • Similar to working out - the last reps are where the gains come from
  • Need to "dig in the most" during these final moments

• Key Principles for Negotiations:

  • The more stubborn party always wins, not the one with the stronger logical case
  • Must be comfortable with discomfort
  • Having experienced M&A advisors is crucial

• Personal Experience:

  • Admits they didn't do a good job with the final negotiations in their own deal
  • Were too tired after 4 months of negotiations
  • Should have pushed harder in the final stages

• Lesson Learned:

  • You'll thank yourself later for pushing through
  • The gains come from those last moments of pushing
  • Need to resist the urge to just close quickly when tired