Many of Templar Advisors’ clients – whether Investment Banking advisory teams, professional services firms, or alternatives managers – often advise prospective clients on courses of action that the client may feel are challenging or even are: “probably not a priority for us right now.” In many of these situations, the natural course of action – in the client’s mind – may be inaction. Shifting people out of their bias towards inertia is one of the most challenging things to attempt when advising a client or pitching an investment strategy. In this blog, we share three powerful strategies for getting past client inertia and drive commitment to action.
Good Bank’s Recommendation to Green Co.
Setting the Scene
Anne Anderson, MD and Head of Good Bank’s Infrastructure & Renewables sector team, sits down with the leadership team at Green Co. to present a strategic M&A opportunity: acquiring Blue Co, an offshore wind farm developer and operator. At face value, this deal is a bit of a stretch for Green Co, and strategically not a ‘route one’ option that the Board would likely consider. Anne, however, is certain it will deliver the growth and diversification that is important for her client’s business.
Highlighting Problems with the Status Quo – emphasise the ‘fear of missing out’
Anne: “Green Co. has built an exceptional reputation in onshore solar, but the market is becoming increasingly competitive. Future growth may be constrained by limited land availability and local planning and regulatory hurdles. Margins are also tightening, given input costs and operating expenses.”
“By contrast, the offshore wind sector offers untapped opportunities. The global offshore wind market is projected to grow by 13% annually over the next decade. However, establishing a meaningful foothold in that market organically would be time-consuming and capital-intensive.”
“By acquiring Blue Co, you could immediately gain expertise, operational capacity, and a foothold in this high-growth sector. Without this move, there’s a risk of being outpaced by competitors who are diversifying their portfolios across renewable solutions. You likely won’t get the growth and diversification that many of your shareholders are looking for if you don’t widen the strategic aperture.”
Academic note: Kahneman and Tversky’s work on loss aversion in Prospect Theory (1979) highlights that people are more motivated to act when they clearly recognise the risks of inaction (specifically, in terms of what they are likely ‘missing out on’). By framing adherence of the status quo as risky, Anne taps into this cognitive bias to get past the Green Co. Board’s likely inertia.
Appealing to Emotion and Values
Anne: “Green Co.’s mission is to lead the transition to a greener future. Expanding into offshore wind is a natural next step — it positions you not just as a solar leader but as a comprehensive renewables pioneer.”
“Imagine the story you can tell investors: Green Co, a company powering communities both on land and at sea, driving the renewable revolution across multiple technologies. This acquisition could also inspire your teams, giving them the opportunity to work on cutting-edge projects that expand their skills and ambitions. In the war for talent, you’ll be a magnet for the brightest and the best.”
She adds a more personal note: “Your leadership has always been about bold moves and innovation. And, Analysts have always rewarded you when you made strong, clear strategic decisions. This is a chance to solidify Green Co’s legacy as a trailblazer in the renewables space.”
Academic note: Appeals to identity and values are supported by studies like those by Higgins (1997). His work confirmed that people are motivated to achieve goals that align with their ideals (promotion focus). Framing the acquisition as a visionary step aligns with this principle. Additionally, emotional engagement enhances decision-making impact. This was shown by Heath, Bell, and Sternberg (Journal of Personality & Social Psychology (2001) in their research on emotional storytelling.
Leveraging Social Proof
Anne: “It’s relatively early days, but we’re seeing this strategy play out successfully across the sector. Last month, Yellow Energy acquired AquaPower to diversify into offshore technologies, and their share price has risen by 20% since then. Meanwhile, Red Renewables’ joint ventures in offshore wind are generating returns 15% above industry averages.”
“Our role is to ensure that Green Co not only keeps pace but also outperforms. We’ve supported clients like Blue Horizon Co in similar acquisitions, helping them unlock synergies and navigate the complexities of integrating different Renewables platforms together.”
Anne concludes with clarity and conviction: “Green Co has the vision and capability to take this step. By acquiring Blue Co, you’re not just adapting—you’re leading.”
Academic note: In Robert Cialdini’s seminal work ‘Influence: The Psychology of Persuasion’ (1984), he researched the ‘non-rational levers’ that influence people. Cialdini’s work on ‘social proof’ emphasizes that people are more likely to take action when they see others, especially peers, successfully doing so. Presenting competitors’ achievements and establishing that “smart people are already doing X…” reduces perceived risk and builds the logic that demonstrates the value of a particular strategy.
Outcome
This story integrates varied drivers of client decision-making to help the banker (in this case) get past likely status quo bias in the Green Co. team. Clearly, with the client’s best interests at heart, Anne employs loss-aversion; plays back the Green Co team’s core values to them inspirationally; and, uses social proof to persuade Green Co’s leadership that acquiring Blue Co is a strategic, values-aligned, and forward-thinking move.
Successful origination is about more than a data-heavy, 50 page pitch book!
To discuss how Templar can help with your sales, business development, and relationship management efforts, do get in touch via: sales@templaradvisors.com