Secrets of successful M&A negotiations through the eyes of founders and investors
Last week, we held a meetup dedicated to the topic of successful negotiations in M&A deals.
Participants actively shared their experiences and knowledge, and together they formulated the key success factors in negotiations.
- First and foremost, it was said that the most important thing in deal negotiations is honesty and openness.
- The best tool for achieving win-win solutions was recognized as the ZOPA (zone of possible agreement) technology, which allows negotiation participants to determine the area of possible agreement and use it to achieve mutually beneficial solutions.
- Everyone agreed that understanding standard market practices for deal terms and the significance of each of these terms, as well as properly prioritizing defending one's own interests, can significantly reduce negotiation time and increase effectiveness.
- Negotiators were compared to "a steam locomotive wrapped in foam" - needing to be firmly convinced of their interests and goals, while also being able to listen and understand their partner, show empathy, and maintain an atmosphere during negotiations that allows for strong long-term relationships with future partners to be established.
- Proper preparation for negotiations helps avoid mistakes and achieve the best results. Even if your "homework" consists of only one item, it must be done!
- It was separately noted how important it is to understand the topic of negotiations and not force your partner to conduct an hour-long tutorial.
- Professional negotiators undergo special training, have extensive experience using a variety of techniques and tactics, and competing with them is not easy. It is recommended to involve professional consultants from the very beginning for negotiations on large and complex deals. At a minimum, there are many issues that can be delegated to them in order to defend one's interests and not harm the relationship with one's partners.
- "Negotiations never end" - we will conclude our brief summary with this thesis.
We are confident that our guests received valuable knowledge, which will certainly help them achieve success in M&A deals, and we hope that our meetup will be the starting point for further exchange of experience on this topic.
Thank you to all who participated!
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