The Importance of Confirmation Bias in Deals

Jay: We have one client who routinely provides us with their full 10 or 20 page investment committee memo that includes everything from management, personal biographies to very detailed breakout. "We're not paid to agree with what an investment team or deal team hopes to be true in order to get a deal across a finish line," he says. Jim: In a certain way, that's the problem with confirmation bias, right? Like they're setting in your head already, this is what I think.