Lost in Translation: The Deal That Died Over a Coffee

A Burtucala Case Study: On the high-stakes chessboard of international business, sometimes the most powerful move is knowing when to order another coffee. The names have been changed to protect the innocent and the endlessly frustrated.

It began, as these things often do, with a spreadsheet.

On one side of the table was “SR,” a fast-paced, numbers-driven international firm. With Mediterranean roots and a playbook stamped by success in a dozen other markets, they were looking to conquer Portugal. They moved quickly, talked in acronyms, and believed that any problem could be solved with a well-structured Q3 projection.

On the other side was “LL,” a leading Portuguese property management company. Their success wasn’t built on spreadsheets, but on two decades of being the indispensable “boots on the ground.” They were the human rolodex of Lisbon’s property scene, a company that grew organically through trust, local knowledge, and the unquantifiable magic of knowing exactly who to call when a pipe bursts at 2 a.m.

The deal seemed pre-ordained: SR would acquire LL, gaining instant market access and local expertise. LL would gain global resources and a secure future. On paper, it was a match made in corporate heaven.

In reality, it was the beginning of a slow, painful, and unintentionally hilarious collision of worlds.

The Culture Clash: The Deal That Died Over a Coffee

The Culture Clash: A Tale of Two Business Models

The first sign of trouble wasn’t in the numbers, but in the rhythm of communication. SR, with their international preconceptions, expected a certain tempo. An email sent at 9:01 AM should have a response by lunchtime. A question about growth potential should be answered with a 5-year forecast, complete with charts.

LL’s approach was… different. An urgent email might be met with a calm, one-line reply: “We should discuss this over a coffee.”

To SR, this was maddening inefficiency. A coffee? They had a deal to close! But to LL, SR’s constant barrage of direct, data-heavy emails felt impersonal and, frankly, a bit rude. Important matters weren't settled over email; they were nurtured through conversation. You don’t build trust—the absolute bedrock of Portuguese business—through a Zoom call scheduled in 15-minute increments.

The conflict was abstract but pervasive. SR tried to quantify LL’s value. “What’s your client acquisition cost?” they’d ask. The founder of LL would laugh. “My acquisition cost is twenty years of having a good reputation.”

How do you put that on a balance sheet?

LL was open-minded, but they were being asked to change their very DNA. SR’s model required a level of standardization that would mean letting go of the flexible, relationship-first approach that made them successful. They were being asked to sacrifice their “secret sauce” for a more “scalable solution.”

The Long, Bumpy Road to Realization

There was no single moment of failure. Instead, the deal slowly suffocated under the weight of a thousand tiny cultural misunderstandings. Every meeting was a masterclass in talking past each other.

• SR would present a slide deck on optimizing workflows.

• LL would listen politely, then ask if they’d tried the new pastel de nata place down the street.

SR saw this as a lack of focus. LL saw SR’s refusal to engage in these small rituals as a lack of respect for the local way of life and business. The false impressions mounted. SR began to think LL wasn’t serious. LL began to think SR didn’t value their actual expertise.

The irony is that both sides were right. Their business models were fundamentally incompatible. SR’s model was built to be replicated anywhere in the world. LL’s model was built to work perfectly, and only, in Portugal.

The realization dawned not with a bang, but with a weary sigh across a boardroom table. After months of bouncy, frustrating negotiations, they all finally understood. The deal fell apart not because of a lack of money or opportunity, but because they simply couldn't find a way to merge their worlds.

The Burtucala Lessons: How to Avoid Death-by-Coffee

This story isn't a failure; it's an education. It’s a perfect example of why cultural due diligence is more important than financial due diligence in Portugal.

1. Put Culture on the Table First. Before you even open the spreadsheets, have an open, direct conversation about business culture. Ask the hard questions: How do you build trust? How do you handle disagreements? What does a "good" business relationship look like to you?

2. Translate Your Business Manners. Understand that directness can be seen as aggression. A slower pace can be mistaken for a lack of interest. Be open-minded and willing to adapt your style. A great opportunity might exist, but you’ll never find it if you can’t get past the initial cultural friction.

3. Recognize That Some Models Don't Merge. Sometimes, the secret sauce can't be bottled. The very thing that makes a local company valuable—its deep, personal, and uniquely Portuguese way of operating—may be the one thing that cannot be scaled or standardized. Acknowledging this early can save everyone a lot of time and money.

At Burtucala, we see our role as more than just dealmakers. We are translators. We help bridge these cultural divides, ensuring that when you sit down for that coffee, you’re not just talking business—you’re building the foundation for genuine, lasting success.

Thinking about acquiring or partnering with a Portuguese business?

Let’s have a coffee and talk about it. The right way :)