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I would rather say sunk cost are very high, which should not be taken into consideration when making the decision. It is only about the opportunity cost (the cost they face by missing out on other targets through waiting for this to materialise in relation to its expected value)
Costs are small- think about how complex it would be for the target to change it's mind, start a roadshow and hire investment bankers to IPO. They would probably lose another 3-4 months and likely face the same challenges $PSTH is facing. (I assume it structure related)
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Agree! Was just trying to argue from Bill‘s perspective as to why he wouldn‘t move on. Highly idealised it makes sense to wait iff Probability no deal target 1 * value no deal target 1 + probability deal target 1 * value deal target 1 - cost from waiting > value deal target 2
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