[saturdayplace]

> M&A guys can smell it when you really want a deal, and that makes them want it less.

This seems perverse, but I'm guessing that there's some kind of economic intuition these guys have gained from being around deals all the time? Something like, "Wants a deal == needs it == a bad investment." This just seems to confirm that the best way to get money thrown at you is to not have a need for it.

[jpdoctor]

> This just seems to confirm that the best way to get money thrown at you is to not have a need for it.

Law of the jungle: If it runs, chase it. If chased, run.

[nostrademons]

I was out with an investment banker at a social outing, and I asked him "What's the biggest mistake startups make during the acquisition process?" He said, "Buddying up with their potential acquirer. Once you express strong interest in getting bought, you've just lost all negotiating leverage. You've got to play coy with potential acquirers until the deal is signed."

[larrys]

"Once you express strong interest in getting bought, you've just lost all negotiating leverage. "

Sure if you maintain that strong stance. But you can always change your level of interest and the opposite party will sense that and run to fix the deal. It's a game of chicken at that point but here's the thing. The acquirer is only looking at you and has decided they want what you have. If they didn't they wouldn't be attempting the acquisition.

So look as eager as you want. And then stop being prompt and act as if something else is going on and watch and see what happens. The investment banker doesn't want to loose a deal.

[lix2333]

I work in an investment bank and I'm not sure how much power the banker has in the deal process. A lot of it is dependent on the buyer, less on the banker. Bankers get paid based on the size of the deal. We usually take 2-3% of the transaction, but if the deal is huge, you might see that number fall down to 1% or so. Usually, its the buyer that hesitates and decides not to buy it. The banker would usually try to get the firm to purchase it, so they can get paid the commission.

[j_baker]

It's not that different from any other type of selling. If you ask someone out, they'll probably say no if you seem to want to go out with them a little too much. Or at a job interview, you'll probably be told no if they sense that you want the job a little too badly.

The reason being that people tend to wonder why it is that you want it so bad, and they tend to assume that's because you can't get anyone else to acquire/go out with/hire you.