Chapter 13
Learning How to Negotiate Successfully
IN THIS CHAPTER
Understanding your position and the other side’s position
Knowing which negotiation techniques to use (and which to avoid)
Finding creative ways to bridge valuation gaps
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!
Knowing Your Position
As I note throughout this book, M&A dealmaking 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 negotiate the deal. Simply put, a weak hand means you have limited options. Time isn’t your friend. Work as quickly as possible to wrap up a deal (but be wary ...
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