Negotiating

Global Finance issued a chapter on 'Negotiating, Valuing and Structuring Winning Deals' through its partner, Merrill DataSite.


The chapter was written from the perspective of experts in the field of negotiating Merger and Acquisitions deals and discusses their key insights into making the process successful.


The main takeaways are perform due diligence, listen, maintain open communication and keep the end in sight.


Prior to negotiating, it is important to research the issues, understand positions and have an idea of who you're dealing with. Getting to know the other side prior to the meeting can give you an idea of their history and motives. This knowledge can give you an advantage in knowing what is important to them. You also need to know what is important to you; what will you compromise on, what won't you? Knowing this beforehand can set the framework for the ongoing conversations.


The key to a successful, mutually beneficial, negotiation is rapport and building a relationship. Take the time to know the other side and listen to them when they talk. You may learn what they are really after, what they are concerned about and what their vision for the end result is. Align your motives with yours and the chance for hard ball decreases.


Maintaining an open line of communication is vital in negotiating. It is not beneficial to shut the other side out and try to our maneuver them. While this may work in the short term, it will damage the long term relationships of those involved. If you don't know the answer to something, or the topic is outside your specialty, look at asking others and form an honest opinion of the information.


The main goal of negotiating is to reach a conclusion. Each side may have a different end goal in mind, but negotiating is a way for both parties to be happy. understanding that both sides want to resolve the issues at hand and reach a deal can keep things in perspective.


The next time you are negotiating try these tactics. Try to remain calm and present your case and listen to the other party before making any final decisions. Working together often leads to greater solutions.