#23 – Due (Diligence) or Die: How FOMO Fueled the Negotiations Behind Elizabeth Holmes's Theranos Disaster

Ever been tempted to jump at a deal so a competitor doesn't get it first? Ever wanted something to work so badly that you'd rather get something done quickly than get it done right? So did the investors in Elizabeth Holmes's catastrophic Theranos start-up. This week on S4N, Gene takes a closer look at one of the biggest business scandals to captivate the public in the last ten years – what would've been the industry-altering medical device company Theranos – and how the negotiations between Theranos and Walgreens enabled the ensuing disaster. Use this cautionary tale to explore the concept of due diligence, the dangers of influence by association, and why devil's advocates are your biggest business assets. Plus, break down why the speed of a negotiation matters, learn the "porch rule," and discover why you shouldn't sell ice to Eskimos. Remember: negotiation is life. Mentioned in this episode: Bad Blood: Secrets and Lies in a Silicon Valley Startup by John Carreyrou The Dropout, a Hulu mini-series "#6: Too Much "I" In Team: Why A Diverse Negotiation Team Matters," Station 4 Negotiation episode from April 9, 2024 "#7: Fins To The Left, Fins To The Right: How to Sweet Talk Sharks + Close Deals with Them, Too," Station 4 Negotiation episode from April 23, 2024 The West Point Way of Leadership by Larry R. Donnithorne