Escaping the Sunk Cost Trap in SMB M&A: When to Hold or Walk Away

This episode explains the sunk cost fallacy in plain language, shows why it’s especially dangerous in small and mid-sized M&A, and gives practical tactics to avoid letting past spending drive future decisions.

Learn concrete fixes—frame decisions around future cash flows, set measurable walk-away criteria, stage-gate diligence spend, use a ‘red team,’ and normalize walking away—to protect capital, preserve reputation, and turn sunk costs into organizational learning.