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How should you concentrate on what to pay for an acquisition? And the way should you recognize when to stroll away? In the midst of a research undertaking on mergers and acquisitions, we explored those questions with 75 senior executives from 40 corporations. All had been experienced, expert acquirers. We learned that there’s a systematic method for senior managers to think about pricing acquisitions. We also discovered that even skilled acquirers, who should know higher, typically get too hooked up to a deal. When that happens, it’s essential to have organizational disciplines in place that can rein within the emotion. A mix of analytical rigor and strict course of discipline will assist senior executives and board members information their corporations towards the fitting acquisitions at the proper worth.

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