The importance of the gut check

The NBA finals has a Hennessy commercial which starts with the phrase “it’s gut check time,” and it got me thinking.

I believe that judicious use of gut checks is a critical skill in a successful dealmaker’s arsenal.

When designed and communicated well, gut checks aren’t confrontational. On the contrary, they often make people feel looked after and comfortable due process has taken place.

A common example in businessbroking land is use of Non-Disclosure Agreements. A legal-feeling document is often sufficient to scare away tyre-kickers.

Another is use of a deposit. Requiring a would-be purchaser to place hurt money on the table that they lose if negotiations go sideways is often a useful deterrent to inappropriate behaviour.

3 out of 4 owners profoundly regret selling afterwards.

It is the opinion of yours truly that a lot of this regret in the world can be alleviated if dealmakers make use of an appropriate number of appropriately sized and selected gut checks as they are going along.

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