Mergers & Acquisitions For Dummies

Chapter 11

An Insider’s Guide to M&A Negotiating

IN THIS CHAPTER

Preparing yourself to negotiate

Knowing which negotiation techniques to use and avoid

Staying on track when the negotiation falters

Negotiating is the name of the game. A Seller constantly jockeys for a higher price, and a Buyer constantly seeks ways to lower the price. Although these opposing points of view may seem to be at never-ending loggerheads, deals can come to fruition if both sides understand how to negotiate.

In this chapter I introduce you to some of the lessons and tricks I’ve observed from doing deals. This isn’t your father’s negotiating book!

Keys to Negotiating Success

Negotiating doesn’t only happen during a tidily defined portion of the M&A process. Negotiations occur throughout the entire process, and M&A deal-makers should constantly remember that reality. Successful deal-making can be in the cards for you if you take a look at some key truths I’ve discovered from doing deals.

Know your position

As I note throughout the book, M&A deal-making is a lot like playing poker. For example, knowing whether you have a weak or strong hand is important because your hand’s strength helps dictate how you ...