Negotiation is a critical skill, especially in mergers and acquisitions where negotiating involves more than forcing the other party to agree to your terms.
Experienced M&A negotiators understand the importance of the human factor. In acquisitions, negotiations are not about winning or losing, but bringing two sides to an agreement. This concept is extremely important in strategic, not-for-sale acquisitions because in many cases the seller will be staying on at the newly merged company.
The illustration I use is negotiating with a car salesman. Typically, we press for the most favorable price, using whatever hard-nosed tactics we can to get the best deal. When we reach an agreement, we drive away with the car, never to see the salesman again. In M&A it’s more like driving away with the salesman in the car. You would probably negotiate a bit differently if you had to see and work with the salesman once the deal is completed!
This is just one of the nuances of negotiations in M&A. An acquisition has many moving parts and a skilled negotiator needs to assemble the right pieces and guide conversations so that both parties reach an agreement.
It’s worth investing time and energy to hone your M&A negotiation skills. Here’s one step you can take immediately. Join us for a webinar on “Successful Negotiation Tactics” on July 30. CPE credit is available. To learn more and to register click here.