The “Deal Wobble” Phenomena

It’s akin to pre-wedding jitters—standing at the edge of a life-changing decision and questioning, “Am I doing the right thing?” Both parties become extremely sensitive and nervous, with every interaction taking on added weight. Even the most trivial miscommunications can feel like deal-breaking conflicts.

The other thing to keep in mind – discussion and heads of agreement or usually simple and in layman’s terms. All of sudden now we are reading a long detailed contract with complicated terms (Sometimes in latin). 

The Complexity of Contracts

Another factor contributing to the Deal Wobble is the abrupt shift in the nature of documentation. Early discussions and heads of agreement are often straightforward, written in simple, layman’s terms to outline the broad strokes of the deal. But as the process advances to the formal contract stage, the language becomes dense, filled with legal jargon and complex terms—sometimes even Latin. This sudden leap in complexity can be jarring, leaving both parties feeling overwhelmed and second-guessing details they previously felt comfortable with. It’s crucial to approach this phase with patience, ensuring you have the right advisors to demystify the contract and confirm alignment with the original agreement.

An example – “I’m Furious”  

One striking example of the Deal Wobble phenomenon occurred when a seller emailed us with the subject line: “I’m Furious.” Understandably, this raised alarms. However, upon investigation, it turned out to be a simple misunderstanding—a misinterpreted comment that spiraled out of proportion due to the heightened sensitivity of the moment. While the issue was quickly resolved, the deal almost fell apart over something that wasn’t even a real problem. This is the power of the Deal Wobble: a time when even a small ripple can feel like a tidal wave.

Another memorable instance involved a transaction that was progressing marvelously. Both parties liked and respected each other and were aligned in their goals. It seemed like the perfect deal for all involved. However, as the seller reviewed the final contract, they stumbled upon a clause that alarmed them. Their immediate assumption was that the buyer was acting deceitfully. When the buyer was approached about it, they were genuinely surprised and had no knowledge of the clause’s inclusion or its purpose. It turned out to be something their lawyer had inserted without their understanding. Once clarified, the seller realized their assumption was incorrect, and the misunderstanding was quickly resolved. The deal then proceeded smoothly to a successful close.

Why It Happens

The Deal Wobble is a natural reaction to significant change. For sellers, the practice they’ve built over decades is about to change hands, representing the culmination of their life’s work. For buyers, they’re about to take on a major financial and operational responsibility. Both sides have invested time, money, and emotional energy into the process, and now the stakes feel very real.

Our Advice: Navigating the Wobble

At Growth Focus, we’ve facilitated hundreds of transactions and have seen this pattern unfold regularly. Here’s our advice to help both buyers and sellers navigate the Deal Wobble and keep the transaction on track:

• Recognize the Phenomenon: Simply being aware that heightened emotions are a predictable part of the process can help you approach situations with more patience and perspective.

• Communicate Clearly: This is not the time for ambiguous emails or off-the-cuff remarks. Be precise in your communications and clarify intentions to avoid misunderstandings.

• Don’t Overreact: If something feels off, pause and seek clarification before assuming the worst. Remember, both parties are likely on edge.

• Rely on Your Advisors: Lean on your broker, accountant, or legal team for guidance. They can provide an objective perspective and help mediate potential conflicts.

• Stay Focused on the Goal: Remind yourself why you entered this transaction in the first place. Keeping the big picture in mind can help you weather minor turbulence.

Closing Thoughts

The Deal Wobble is a normal, predictable part of the sales process. It’s a moment of doubt and sensitivity that can derail even the best-laid plans if not managed carefully. At Growth Focus, we’ve seen firsthand how buyers and sellers can successfully navigate this phase by staying calm, communicating clearly, and trusting the process.

Remember, much like walking down the aisle on your wedding day, the nervousness will pass. With the right support and perspective, you’ll emerge on the other side of the transaction—ready to embrace the exciting new chapter that lies ahead.