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How should you think about what to pay for an acquisition? And the way ought to you recognize when to walk away? In the course of a analysis project on mergers and acquisitions, we explored those questions with seventy five senior executives from forty firms. All had been skilled, expert acquirers. We learned that there is a systematic way for senior managers to consider pricing acquisitions. We additionally learned that even skilled acquirers, who ought to know higher, sometimes get too connected to a deal. When that happens, it’s important to have organizational disciplines in place that may rein within the emotion. A mix of analytical rigor and strict course of discipline will assist senior executives and board members information their companies towards the right acquisitions at the right value.

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