Page 304 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes

Notes Negotiation and closing are critical business skills, and central to the M&A
process - yet, many owners and managers have been trained “on the job”, or left entirely
to their own devices when it comes to this important step.

Great negotiators are groomed, not born. If you want to garner the highest price and the most
advantageous structure for your next transaction, your powers of communication, persuasion
and reason need to be compelling. This 4 page white paper will provide you with the road map
and tools you need to negotiate and close your deal with confidence and skill. It is designed to
provide a strong foundation and innovative strategies for communicating persuasively,
overcoming objections and obtaining an agreement on the terms that best fit your objectives.
The process by which you are selling your firm has taken some very interesting twists and turns.
From valuing and pricing your business to deciding on the proper technique in which to structure
the transaction, you and your team have worked in conjunction with the potential buyer(s) to
cooperatively examine each alternative and devise the proper technique in which to handle each
phase in the process. As this process continues, you find yourself in an unfamiliar and sometimes
a rather uncomfortable position:

The Negotiation Table

The art of negotiation plays a pivotal role in buying or selling a business. Differences of opinion
are almost assuredly going to occur and only the most pragmatic negotiators can find creative
solutions for these differences. By developing a working strategy, both you and the prospective
buyer can maintain an open line of communication that will enable you both to know each
other’s position. It is imperative that the parties are aware of the issues that are important to one
another. This allows each party to assume a non-adversarial stance in assurance that the business
will change hands smoothly.
Many factors have to be discussed and finalized before a closing can be accomplished. These
include the needs, terms and price of the transaction, as outlined by both parties. Sellers naturally
have the upper hand when negotiating these particulars since they best know the business. The
buyer can minimize this by learning as much about the business as possible, prior to the start of
negotiations. This eliminates much of the difficulty of reaching agreement and keeps the parties
from wasting time.

By understanding each step in the negotiation process and being fully aware of all the implications
entailed in this process, each of the parties involved can enjoy a smooth transition of ownership.

14.6 Tactics at End of Negotiation

 To avoid concessions
 Silence
 Walkaway
 Promise an exchange

 To exact concessions
 Nickel and diming

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