Three facets Negotiation
So you can negotiate skillfully. You know how to prepare, dialog, and make proposals. Have you uncovered most of the possible entities for making a deal? Dealing with a limited set can undercut outcomes and undermine your skills and tactics.
The owners talked with several private equity companies to sell their Market Research company serving the restaurant industry. They thought it best to persuade for a higher valuation and refine their negotiating tactics for dealing with each private equity company hoping to start a bidding war.
I ask, “Why not look for new and more interested buyers?”
There are three facets of negotiation skills, the first two are staples, and the third is less used.
The first focuses on skills and tactics at the negotiation table, facilitating an effective process, strengthening relationships, and making better moves and countermoves. The second facet stresses packaging and repackaging of a deal for value creation and bargaining. Often overlooked, the third facet is to uncover other interested parties (buyers or sellers) to ensure promising outcomes. Great negotiators must be apt at all three aspects of negotiations.
The company initiated a dialog with an equipment supplier for a much higher selling price. The equipment supplier valued exclusive access to the Business Research Company’s large base of customers. The move increased pressure on the private equity companies to up their offers lest they lose the deal.
HAVE YOU APPLIED ANY OF THE NEGOTIATION SKILLS I HAVE SHARED WITH YOU OVER THE PAST FEW YEARS? WOULD YOU PLEASE SHARE THE OUTCOMES
WITH ME AT satishmehtausa@gmail.com