How Understanding Psychology Can Benefit Your Deals

By Michael D. Rubin, CEO & Founder · Updated September 2026 · 717 words

Deals are made by people, and their psychology, their fears, their fatigue and the others whose opinions they trust, decides more outcomes than most buyers and sellers expect. A transaction can be sound on paper and still collapse because momentum stalled, a silent partner felt ignored or a relative talked someone out of it. Paying attention to those forces is part of getting to closing.

Time is the enemy of every deal

Enthusiasm fades with each delay. A seller who waits weeks for a response starts to wonder whether the buyer is serious; a buyer kept waiting for documents starts to wonder what is being hidden. Doubts that would have passed quickly grow in the silence, and outside events, a slow month, a new competitor, a change at home, have more time to intervene.

Keep momentum by setting timelines in the letter of intent, answering requests promptly and making sure each side always knows the next step. A buyer who lets things drag can also use the seller's fatigue to reopen the price; see preventing a retrade before closing.

See the deal from the other chair

For a seller, the sale may end a working life and decide the shape of retirement. For a buyer, it may be the largest financial commitment they will ever make. Both are under stress, and stressed people react strongly to small things. A seller may bristle at a diligence question that sounds like an accusation. A buyer may read a late answer as concealment.

Before reacting, ask how the same event looks from the other side. Most friction in a deal is misread intent rather than bad faith, and a short conversation clears up what a week of assumptions would make worse.

Expect doubt near the finish line

Both sides tend to wobble as closing approaches. The seller starts to feel what letting go really means: no more title, no more daily purpose, someone else in the office. The buyer starts to feel the size of the debt and the personal guarantee. Neither feeling means the deal is wrong. It means the deal is real.

It helps to name this in advance. A seller who has planned what comes after the sale, and a buyer who has stress-tested the numbers with an accountant, are far less likely to act on last-minute nerves by reopening terms that were settled weeks earlier.

Partners who do not run the business

When a company has more than one owner, their goals often differ. The partner who works in the business may want a long transition and protection for the staff; a silent partner may want the highest cash price as quickly as possible. A buyer negotiating with one owner can be blindsided by another.

Sellers should agree among themselves on price, terms and roles before going to market, and buyers should ask early who must approve the deal. Understanding what each owner needs, and finding terms that meet each set of goals, keeps a split from ending the deal.

The influencers behind each decision

Buyers and sellers rarely decide alone. Accountants, attorneys, spouses, grown children and friends who once sold a company can all steer a decision, sometimes without attending a single meeting. Identify them early and address their concerns directly rather than hoping they stay quiet. People outside the negotiation can stall a deal too, and each needs a reason to support it, or at least not to block it.

• Landlords, whose consent may be needed to transfer a lease
• Lenders, whose conditions shape timing and terms
• Key employees, whose reaction affects the buyer's confidence
• Major customers or suppliers whose contracts need consent to transfer

How MDR & Associates keeps the human side on track

MDR & Associates pays attention to everyone whose view shapes a decision, not only the owner across the table, and keeps the process moving so doubts have less room to grow. A principal of the firm is in every negotiation, and every offer is presented to the owner in person, which gives the owner room to react privately and decide calmly. The firm works alongside the owner's own attorney and CPA, as described in the advisors on your sale team, and the ten-step process shows how each stage is sequenced. To talk through a possible sale, contact the firm.

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Questions owners ask next

How can a buyer tell whether a seller is serious about selling?

Look at preparation and behavior. A serious seller has organized financials, an advisor, a clear reason for selling and a realistic view of value, and answers questions promptly. Repeated delays, shifting terms or reluctance to share basic information after an NDA suggest an owner who is still only testing the market.

Should my spouse be involved in the sale process?

If your spouse will be affected by the decision or will influence it, involve them early. Surprises late in the process cause more trouble than questions early. Many owners bring their spouse to key meetings with their advisor and attorney, while keeping buyer meetings to the principals.