The Games That Buyers Play - Episode 100

Aug 28, 2025

Verne Harnish, founder and CEO of Scaling Up, shares his expertise on navigating the intricate world of mergers and acquisitions. He reveals the psychological games buyers often play to negotiate lower prices and stresses the importance of partnering with a skilled M&A advisor. Business owners must strategically prepare their companies for sale at the right time, while also documenting their legacy. Verne highlights the importance of maintaining focus during negotiations and planning for life after the sale.

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ADVICE

Choose Seller-First Representation

Hire an M&A advisor who truly represents sellers, not a firm tied to frequent buyer work.
Prioritize seller-side focus over brand-name global credentials when choosing representation.

ANECDOTE

Bob Rudon's Valuation Leap

Bob Rudon's company was initially valued around $20–25M by big firms but sold for about $75M with seller-focused representation.
That gap shows how advisor choice can radically change outcomes.

INSIGHT

How Buyers Use Psychological Warfare

Buyers use exclusives, speed promises, and psychological pressure to strip sellers of leverage.
Those tactics convert a quick-feel deal into months of disruption that force price concessions.

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In this 100th episode of the M&A Mastermind podcast, host Nick Olsen interviews Verne Harnish, founder and CEO of Scaling Up, discussing the complexities of mergers and acquisitions (M&A). Harnish shares insights on the importance of having a skilled M&A advisor, common tactics used by buyers to negotiate lower prices, and the psychological games that can affect sellers. He emphasizes the need for business owners to prepare their companies for sale, the timing of selling, and the importance of documenting their legacy. The conversation also highlights the role of M&A advisors in negotiations and the qualities to look for when selecting one.

Takeaways

Business owners often face psychological games during M&A transactions.
Choosing the right M&A advisor is crucial for maximizing sale value.
Sellers should be cautious of unsolicited offers and seek professional advice.
Timing the sale of a business is critical; sell when the business is thriving.
Documenting wisdom and legacy can be as valuable as financial wealth.
M&A advisors should help keep business owners focused on their operations during negotiations.
Understanding buyer tactics can help sellers avoid common pitfalls.
Preparing a business for sale involves ensuring financials and operations are in order.
Life after selling a business can be challenging; planning is essential.
A good M&A advisor should have experience across multiple industries.

About the show:

The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.

The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.

With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium-sized private business owners they focus on serving.

Keywords

Mergers & Acquisitions (M&A), acquisitions, business sale, M&A advisors, business strategy, entrepreneurship, exit strategy, buyer tactics, business valuation, legacy planning, scaling up, Verne Harnish