Negotiating Partnerships: Increase profits and reduce risks

Financial variables and conditions

Price and terms of payment are ingredients of any business transaction. Companies often follow routines and normal practice for the industry without testing to see whether changing the conditions might yield added value. Often negotiators are not even authorized to discuss conditions other than the standard ones. The people who have determined what these standard conditions should be, are rarely present at the negotiating table and, therefore, have little knowledge of what could be achieved by letting their own negotiators have a free hand. Among financial variables we find:

• terms of payment — credits;

• purchasing, leasing, renting, residual value, repurchase, shared ownership, outsourcing;

• pricing;

• splitting up ...