Imagine going into an M&A pitch with a pitchbook page saying “we will tell you not to talk to the buyers in the bathroom during due diligence.” That is not a good slide! (Imagine the clip art!) And yet it’s the thing that stuck out to this former client, and that convinced him that Goldman’s skill is what got him a 40 percent premium.
Whoever came up with the bathroom tip at Goldman must be very proud.
This is good, too:
There is no moral importance or objective truth involved in driving on the right or stopping on red and going on green; the value is that everyone agrees to follow the same rules. Similarly the value of GAAP is not so much that it reflects reality — though it does the best it can — but that it is generally accepted.