Why We Need to Ditch Business Jargon

Synergize. Boil the ocean. Open the kimono. Middle market M&A is full of business jargon.

But, as deal professionals enter a new era of transparency with investors, regulators, and the public — thanks to the JOBS Act — the insular language to which we have grown accustomed may become problematic. As Bob Rice, Managing Partner of Tangent Capital, has previously explained, “The need to demystify private equity — and alternative investments in general — has become increasingly important recently.” He continued, “The only way you can mainstream alternative investments…is to explain them clearly.”

The reasons for using opaque jargon are varied. While a technical term or acronym can be appropriate at times, their uses have arguably become too pervasive. Gemma Godfrey, Head of Investment Strategy at Brooks Macdonald and the savviest businesswoman on Twitter, recently explained that “we use our language to either hide or to try and make ourselves sound smarter.” Alternatively, Dan Pallotta, President of Advertising for Humanity, has claimed that “people don’t want to commit to things, and clever language can give the appearance that you’ve just said something that passes the red face test when, in fact…it doesn’t.”

Whatever the reason, the confusing parlance is creating challenges for deal professionals. Godfrey explained that jargon “is backfiring” and  “we are…alienating other people. We are cutting ourselves off from the rest of the world. It is leaving us isolated and open to criticism and open to attack.”

Below are a few resources on business jargon and how to overcome it — including Godfrey’s TedxWallStreet video, Dan Pallotta’s full article and podcast, and more:

1) Bob Rice on Private Equity’s Jargon Problem
2) I Don’t Understand What Anyone Is Saying Anymore
3) Business Jargon Is Not a “Value-Add“
4) 45 Examples of Business Jargon
5) Gemma Godfrey on Overcoming Business Jargon