Negotiating a Merger or Acquisition

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Win-Win Negotiating

You are about to end the negotiation, either by closing a deal or walking away from it. If you are going to close the deal, be sure that the deal is positive for both parties, producing a win-win situation [more…]

Five Ways to Generate a Better Business Option Now

When you’re stuck with a tough decision — between a rock and a hard place — it’s time to invent a third, better option. Just think creatively, and look at the problem from a new perspective. Here are five [more…]

Mergers and Acquisitions: How to Read the Other Party’s Situation

Whether you’re a Buyer or Seller in the M&A process, you want to be able to read your opponent like a poker player. You want to know whether you’re in a strong position or a weak position. The stronger [more…]

Reasons to Renegotiate an M&A Deal

Company valuation can change during the M&A process. In fact, that occurrence even has a name: renegotiation. Or, as disappointed Sellers may call it, the dreaded renegotiation. [more…]

Mergers and Acquisitions: Recognize the Factors of Motivation

The most motivated party in an M&A deal is the one most likely to cede power to the other side to make sure the deal goes through. But what exactly provides this motivation? Several factors: [more…]

Mergers and Acquisitions: Understand Who Has Power

Typically, Seller has a lot of power early in the M&A process. As the party being courted, Seller controls whether meetings occur and whether information is exchanged. [more…]

How to Disclose Bad News in an M&A Deal and Still Maintain a Power Position

At some point or another in an M&A deal, you may find that you need to give the other party a piece of information that gives that party more power over you. These suggestions can help you control all [more…]

Understand M&A Personality Types to Improve Your Negotiations

Regardless of whether you’re buying or selling in an M&A transaction, one helpful trick for getting deals done is to assess the personality of your negotiating counterpart. You’re liable to run across [more…]

How to Avoid Communication Breakdowns in M&A Deals

A failure to communicate can be major problem and even a death knell for the M&A process. Communication problems typically come in one of three flavors: [more…]

How to Handle a Breach of an M&A Confidentiality Agreement

Breaching the confidentiality agreement means one party in the M&A deal has not followed the conditions of the agreement, therefore violating the agreement. Breaches are serious occurrences and should [more…]

M&A Negotiation Key to Success: Know Your Position

M&A deal-making is a lot like playing poker. For example, knowing whether you have a weak or strong hand is important because your hand’s strength helps dictate how you negotiate the deal. [more…]

M&A Negotiation Key to Success: Remember the Goal

Buying or selling a business can be a messy affair. M&A insiders call it “making sausage” because it’s an ugly process with a tasty end result. (Well, assuming you’re not a vegetarian. In that case, think [more…]

M&A Negotiation Key to Success: Negotiate with the Decision-Maker

The biggest, most important, and most basic M&A negotiating rule is to make sure you negotiate with the actual decision-maker and not an influencer. Of course, speaking with an influencer isn’t automatically [more…]

Keys to M&A Negotiation Success

Negotiating doesn’t only happen during a tidily defined portion of the M&A process. Negotiations occur throughout the entire process, and M&A deal-makers should constantly remember that reality. [more…]

How to Use Successful M&A Negotiation Tactics

Negotiating an M&A deal is not about forcing your will on the other side. That’s called unconditional surrender. If the other side has other options, they’re not going to agree to your stringent and unbending [more…]

When to Phone and When to E-Mail during M&A Negotiations

As an aid to successfully negotiating an M&A deal, pick up the phone and have a conversation, especially if the subject is delicate. The flip side to “pick up the phone” is “avoid e-mail.” E-mail is a [more…]

Successful M&A Negotiation Tactics

Certain tactics can be helpful in the process of negotiating a successful M&A deal. Remember: Negotiating isn’t about getting everything you want, but about finding a deal that is agreeable for both sides [more…]

M&A Negotiation Tactics: Beware of a Bad Bluff

Bluffing may be a bit Machiavellian, but it can be a useful M&A negotiation tool. M&A negotiating often involves much of the same kind of bluffing (and knowing when the other side is bluffing) as is found [more…]

How to Avoid Common M&A Negotiation Mistakes

The number one M&A negotiating tactic to steer clear of is bullying. For some crazy reason, negotiating novices tend to think negotiating is about imposing their will on the other side with a take-no-prisoners [more…]

How to Get an M&A Deal Back on Track

Here’s a key point for anyone who wants to get into M&A deal-making: The process isn’t linear. Expect the unexpected. The plan is important, even imperative, but you can’t become a slave to it. As long [more…]

How to Negotiate an M&A Deal in Good Faith

Negotiating in good faith is a term that you may hear bandied about during the M&A process. Negotiating in good faith is a code of honor. It means you follow through on what you say you’ll do, and that [more…]

How to Agree to M&A Exclusivity

Buyers often prefer to negotiate M&A deals without the nuisance of competition. Strike that; Buyers always prefer to negotiate deals without the nuisance of competition. Who can blame them? Removing competition [more…]

Should You Prolong M&A Exclusivity?

If Buyer is unable to close the M&A deal in the time the letter of intent (LOI) allots, you as Seller should confer with your advisors to determine whether Buyer is having problems that may compromise [more…]

Full Disclosure Is the Best Policy When Doing an M&A Deal

One of the biggest mistakes made by Sellers in an M&A deal is thinking that it is the Buyer’s responsibility to discover any problems with the business. It is not. The Seller is obligated to disclose what [more…]

Ways to Solve Valuation Differences in an M&A Negotiation

Valuation is always the million-dollar question — well, often the multimillion-dollar question — in an M&A negotiation. To get past the valuation impasse, here are a few ideas on ways Buyers and Sellers [more…]

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