During due diligence, our leadership team is getting incredibly defensive when the buyer's accountants poke holes in our numbers. How do we use the trust equation to lower our self-orientation and keep the deal on track?

Question

Tyler Smith · Accepted Answer

Due diligence is an invasive process. When a buyer's accountants begin questioning your historical financial records or criticizing your automated systems, it is natural to get defensive. However, defensiveness destroys trust and can cause a buyer to walk away from the deal.

To handle this pressure, you must apply the trust equation from Charles Green's framework. The key is to lower your self-orientation. Understand that the buyer is not attacking you personally; they are trying to manage their own risk.

When they point out a discrepancy or a weakness in your operations, do not make excuses. Instead, listen actively and validate their concern. Frame the issue openly. For example, if they find an issue with your inventory tracking, acknowledge it and explain how your leadership team is currently using our weekly Level 10 Meetings™ to resolve it.

By showing that you run an open, honest business that doesn't hide problems, you actually build deep trust. This transparency makes the buyer feel secure, which keeps the negotiations moving forward smoothly toward a successful closing.