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BUYER PSYCHOLOGY
Just as many sellers undermine themselves through psychological blind spots, delusions, or biases (see chapter 1), prospective buyers need to be on the lookout for their own foibles. Fortunately, buyers aren't as prone to such problems; after all, you're not selling your "baby," so the emotional stakes are generally not as high.
The most common mental obstacle I've encountered among buyers -- especially first-timers -- is over-optimism and impatience. Those who don't know the ways of M&A tend to be a little more optimistic than experienced players, who realize that in anything as complex as an M&A transaction, nothing goes exactly as planned. Every deal makes you a little smarter, but every deal entails doing something wrong. (Of course, sometimes you hit a home run the first time out -- but that can be even worse.) You need to anticipate problems so that they don't throw you.
Another common pitfall is becoming too attached to the immediate goal. Once a buyer believes, even subconsciously, that he has to have a particular company, that person is in grave danger of overpaying (which is the most common error). Don't fall into the trap of feeling like you're losing if you don't buy this business. Remember, if the acquisition is too pricey, you could do it on your own or find another company.
This is where having a team of seasoned M&A professionals can be your safety net.
