One of the most underrated risk factors in acquisitions has nothing to do with the business.

It’s social.

By the time many buyers reach the valuation step, they’ve already told people.

• Their spouse
• Their friends
• Their current employer
• Sometimes their employees
• Their lender
• Their broker
• Their inner circle

At that point, backing out isn’t just a financial decision. It’s an identity decision.

And once social commitment is in place, people naturally begin defending the deal.

Not because they’re trying to be dishonest—because they’re trying to preserve consistency.

That’s why some of the most aggressive “valuation pushback” doesn’t sound like analysis.

It sounds like anxiety.

The buyer isn’t thinking: “What’s the right price?”

They’re thinking: “How do I avoid looking foolish?”

And lenders feel this too. Pressure creeps into the process—even if no one says it out loud.

This is one reason disciplined risk management matters.

Because emotion doesn’t just distort valuation.
It distorts everything downstream: diligence, structure, terms, and post-close reality.