Having in your team an expert negotiator is key to making sure you receive the correct value for your company– the value you have been building for years.
Negotiating the sale of a company isn’t only a debate about price; during the discussion many topics are brought up. This helps the negotiator and lets him use winning formulas for both parties.
If you don’t want the negotiation to fall through, it should be a systematic process, a dance that should have internal consistency, and in which all parties fit with each other in a logical way. Because of this, it’s vital to manage each piece of the agreement carefully. They are all related to each other and, therefore, it is fundamental to anticipate any collateral effect there might be from one area to another. If a negotiation is difficult in one area, it will affect other parts of the transaction.
A negotiation is like a dance. The dance is danced with the valuations, emotions, alternatives and expectations of both parties. In order for the dance to be a success, you have to be well prepared and focused on every area of the negotiation.
If you are dealing with something really important hire the best dancers, those who are experienced in negotiation. These experienced negotiators will represent you better than you can represent yourself in this critical moment of your business’s life.
This article was written by Enrique Quemada, Chairman of ONEtoONE Corporate Finance Group.
Book: How to Maximize the price of my company.