tyler-smith.com · Questions & Answers

Negotiations have turned adversarial, and due diligence has stalled because the buyer's legal team is acting incredibly defensive and treating every request like a battle. How do we use the principles of trust and vulnerability to break this gridlock and get the transaction back on track?

Deal friction usually occurs when self-orientation overrides the search for mutual value. When the buyer's legal team becomes overly defensive, they are trying to eliminate all risk, which is impossible and kills deals. To get the transaction back on track, you must refocus the relationship on trust and personal connection.

Use the trusted advisor framework to address the underlying anxiety. Instead of fighting every redline, schedule a direct, principal-to-principal meeting between you and the buyer, bypassing the lawyers. This conversation should focus on building intimacy and reducing perceived self-orientation.

Start by acknowledging the buyer's concerns directly. Frame the issues not as legal battles, but as shared operational challenges that can be solved together. Practice active listening and show that you understand their need for security, while also being vulnerable about your own need for a fair deal.

Once you have established personal trust, bring the focus back to your operating model. Show the buyer how your EOS® processes, including your Accountability Chart and documented systems, minimize the operational risks they are trying to cover with legal language. By replacing suspicion with transparency and showing a genuine commitment to their post-close success, you can break the legal gridlock and move the deal to a successful closing.

Category: Valuation & Deal Structure

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