In talks with a strategic buyer, the entrepreneur sizes up his company by the industry's profit multiple—or worse, by the book value of assets.
The buyer is pleased (though he keeps a poker face), because none of that really matters to him. By integrating the acquired company’s know-how into his global business, he’ll make hundreds of times more profit.
The trouble is, the seller never tries to think like the buyer. He stays too locked on himself and leaves money on the table.
Contrary to popular belief, ego will betray you, while empathy will make you rich.
People undervalue themselves just as founders do their own ventures. When offering services, chasing a job interview, or out on a date, they calculate their "cost of goods," stacking up against rivals or weighing strengths against flaws.
That’s self-commoditization.
The fix is paradoxical—you must truly hunger to see what the Other craves, the one who runs nothing like you. Not just pause yourself for a while, but let in what at first seems odd, unpleasant, or even outrageous to you.
If you pull that off, no rivals stand in your way.
Yours sincerely,
-Alexander
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.
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