Friday, July 08, 2005

The Deal Optimism Cycle

While helping my current client out on an acquisition, I noticed that, like any deal, there is a periodic cycle in which optimism and euphoria on whether the deal will happen is followed by pessimism and dread that the whole thing has been a waste of time.

The cycle is approximately every 12 hours and is closely synched with the most recent time you had the legal team in the room, since their job seems to consist of why the deal shouldn't be done, while the finance and marketing due diligence teams' job is to tell you why it should be done.

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