Will you be transacting a business negotiation soon? As you make your preparations, read some useful tactics and reminders from expert websites such as thedvsgroup.com:
Never go to a negotiation without preparing first. Learn as much as you can before the meeting.
If you’re buying, research the business through their website, social media accounts, and public documents. Conduct a background search of key people, especially the person assigned to negotiate with you. You’ll need to build rapport with this person or group, so you want to know what makes them tick. Find out the details of previous deals done by the company.
Expand your research. Check out the competition—their pricing and offerings. With all the information you’ve gathered, you can look at the pros and cons of what you’re about to do. You’ll also know the right questions to ask during the negotiations.
Then prepare the first draft of the agreement. You’ll be able to have a clear view of the structure and key points of the business deal. The draft will be changed based on the negotiations. But at least you’ll have some momentum at the start of the process. You’ll also be able to show that you’ve done your homework. You can use the market data you’ve researched as leverage once negotiations start.
Try to listen more than talk. Understand what the other party is saying. Look at the issue from their point of view based on what they are saying. You’ll learn a lot by just listening. You’ll be able to learn the key issues of the business and determine the correct response.
Always maintain a professional attitude. Don’t be too friendly, but don’t be a difficult person, either. You wouldn’t want to make the other party dislike you. You might have to deal with them for a long time. A professional attitude can lead to a positive and long-term relationship with all the people involved in the negotiation.
Take the broader view
Don’t be too fixated on the current deal. If you and the other party cannot agree, then be prepared to walk away. The longer you take to close a deal, the more expenses you will most likely have.
Also, there are alternatives out there. For example, if you’re selling a company, encourage several bidders to consider your business. If you’re buying a business, use your research to approach competitors.
Choose the right people
To be successful at anything, it’s important to choose the right people to assist you in achieving your goal. You might need technical, emotional, or financial assistance. Make sure that someone will be there to help explain things or make things clearer for you.
Make sure that the decision-makers on both sides are present during the negotiations. You’d want them on hand to sign the papers once the deal is done. You wouldn’t want to complete a deal only to find out that someone else outside of the meeting will need to approve it.
Buying or selling a business is a big decision. Sometimes negotiations can become heated because both parties realize the magnitude of the decision they are about to make. For cases like these, it’s better to hire a third party that will remain neutral throughout the proceedings.