The "gas pedal" mistake in M&A
In this advisory segment, the speaker warns founders against the common error of easing off operational intensity—"letting off the gas pedal"—once an acquisition is on the horizon. He argues that maintaining or accelerating growth is essential to preserve negotiation leverage, prevent team attrition, and avoid a decline in key performance metrics that acquirers can exploit to lower the purchase price. The speaker outlines the chain reaction that can occur when founders become complacent: the team senses uncertainty and begins job hunting, metrics deteriorate, and the buyer uses these signs to justify a reduced valuation. The core recommendation is to push harder than ever, demonstrate continued growth, and keep the business’s momentum strong up to the point of sale.
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