EPISODE · Apr 27, 2026 · 11 MIN
Escaping the Sunk Cost Trap in SMB M&A: When to Hold or Walk Away
from Small and Mid-Sized Business Capital and Exits · host MICHAEL SCHUMACHER
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.
What this episode covers
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.
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Escaping the Sunk Cost Trap in SMB M&A: When to Hold or Walk Away
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