The roller coaster of emotions in M&A processes

For some years now, being in the world of corporate transactions, we can corroborate that the emotions experienced in an M&A process have a very specific weight in the final result. In fact, these emotions are very similar to the ones we can experience when playing a high-risk sport.

There is the reflection phase, which can be similar to when we consider climbing a mountain, hang gliding or skiing. A phase of long reflection, what is the objective in practicing it? It is usually a quiet, stable phase and is usually shared with our closest environment, with friends who have been through this experience before, such as family. Some businessmen -very wisely- usually look for information about the processes, participate in seminars, etc.

Once the decision has been made to advance with the jump, the descent or the climb, the phase of how and with whom it is done should come. We enter a new phase of reflection. As with any other risk sport, it is not advisable to do it individually, especially the first time, and even on future occasions. It is always better to be accompanied by an expert.

Once we have decided who will accompany us, the up phase begins, where we have the maximum optimism and internally we say to ourselves “sure that many investors will find us and all are willing to pay what we believe our company is worth”.

The moment arrives to check that all our material is in the best conditions to make the descent, the skis well chosen, the bindings in their exact point of weight, well waxed… The nerves start, we see that there are things that have to be touched up or improved before launching. If we want to reach the goal with the maximum guarantees, the material has to be perfect. Finances are key to an M&A process, but so are a thousand other details.

We analyze the material again, we have it better prepared. And we are invaded by more feelings, perhaps a moment of disappointment or more emotion, will we really be valued for what we expect or perhaps much more? Will we be able to reach the goal?

There comes the waiting phase before jumping, the phase of looking for investors… what impatience!

We are already at the starting point, the track is free! We have the investors, and we are once again filled with great expectations and positivism. We need to map out the process well, this is key.

We start to descend and the first doors show us the first difficulties. We dislike the position of the doors, we overcome the first ones, we negotiate them well. New doors come and we suffer new disappointments because of the difficulty. We consider abandoning the descent. We feel disappointment and anger. We reflect again and decide to continue.

Doubts accompany us throughout the final phase, we have the goal within reach. Restlessness, impatience.

Finally, we trace the last doors, zigzagging with ingenuity and tenacity. We cross the finish line. Joy, we congratulate ourselves at last, we start a new life.