Recently, at Closa Capital, we have internally discussed a frequent point of disagreement with our clients, which is how we perceive our counterparts. As the processes usually take a long time, choosing one preferred bidder over another is quite crucial for the ultimate success of the process.
In this regard, we have analyzed that confidence is generated in three areas:
- The realm of positive relationships, which means being aligned with each other’s concerns in such a way that they are balanced, fostering collaboration, resolving conflicts, and providing honest feedback that helps. It’s that person who adds value, who is empathetic.
- Another aspect is an individual who possesses judgment and recognized experience by third parties, to the extent that people seek advice from them, and they have actually produced results. Additionally, they have the ability to anticipate and quickly resolve problems. This person is esteemed.
- Lastly, but not least, it is the individual who consistently acts in a manner that sets a good example: they do what they say and say what they do, always exceeding expectations. This person is often discreet.
In this context, Zenger&Folkman conducted a study with over 87,000 leaders, yielding the following results:
- The maximum level of confidence normally observed is 80%, with 100% representing blind trust.
- Out of this 100% blind trust:
- Interpersonal skills alone contribute 50% to the total.
- Being recognized as a sensible person contributes 37.5% on its own.
- Consistency as a person contributes 35% respectively.
- In any trait, interpersonal skills alone provide an additional 50% of trust.
- People, in general, place blind trust in 20%. People are good.
Applied to M&A, based on our experience, the best and only attribute is “consistency.” Unfortunately, clients, as usual according to the mentioned study, tend to favor those with “positive relationships.”
Since 1987, Closa Capital has successfully concluded more than 750 operations thanks to its extensive sectoral experience and a profound international network that facilitates access to any place in the world through local representation in over 50 countries.
Having experienced individuals with great talent is the result of structuring a high-performance team where each member possesses the necessary seniority and support structure for each project.
Written by Jose R Vinaixa, Associate Closa Capital
