Core Belief: Successful Deals Occur in the Range of Fairness:

In any transaction that involves any level of human interaction or post-closing support, for a deal to succeed, it must occur in a ‘Range of Fairness”.
 

That Range is the intersection of perceptual belief of what is fair, after discussion and negotiation, between the Seller and Buyer.
 

One can get a deal done outside of that range, but if either party feels the deal is outside of that range, they will work to drag it back within the range:

• If a Buyer feels they have overpaid, they often try to find ways to get back into the Range of Fairness—and not always in ways that create value for the Seller.

• If a Buyer sees a deal perform well, we have found they are often more generous on post-closing items.

• If a Seller feels he has been shorted, we have seen Sellers (intentionally or not) destroy value post close.

• Conversely, if a Seller feels he has been overpaid, we often see Sellers will work to deliver more value post-close to the buyer.

• If we do the deal within the Range of Fairness, both parties tend to work best post-closing leading to the overall success of the transaction for both parties.