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Negotiations

Negotiations

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Published by: ecell_iimk on Aug 16, 2009
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02/24/2015

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Negotiations

Anjana Vivek www.venturebean.com beanie@venturebean.com
1

Preparation is the key to success

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Define objectives

WHAT ?

WHY?

HOW?

WHO?

WHEN?

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Identify key issues

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Understand your bargaining power

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Put yourself in the other party’s role … investigate the other party

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Fix time frame

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Decide on what you must have from the deal

X X
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Decide on what you are willing to compromise on

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Fix your boundaries for walking away from the deal … i.e. what is definitely not possible

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Think of a negotiating strategy

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Select your negotiating team with care

Think of the next steps, post deal

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Plan on the documentation, have a draft document in place prior to negotiation

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Practice the negotiating strategy with your team

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IN SUMMARY
Prior to negotiations, it is important to be prepared with the following: What you want from the proposed transactions Transaction/deal maker issues Transaction/deal breaker issues What is the point where you are prepared to walk away
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  

16

IN SUMMARY

Try to put yourself in the other party’s shoes to understand their interests in the proposed transaction Consider factors which may be relevant to transaction, either in terms of the valuation, deal structuring and/or such factor which may need to be factored in Consider legal and regulatory issues that may be relevant, for example warranties and representations in documentation 17 www.bizkul.com

IN SUMMARY

 

Keep a checklist of the factors you consider important, prior to the negotiations Decide on the team members who will negotiate Who will be your key negotiator(s) Will you plan to have different persons handling specific questions
18

IN SUMMARY

Decide on the negotiating strategy you want to adopt Will you have your advisors with you to participate in the negotiations What are the questions you plan to ask, how will you formulate questions – mind your language . . . What are the expected questions and how you can answer them
19

IN SUMMARY

How will you prepare to listen to the other team, listen to the articulated demands and the unarticulated ones How will you plan to handle potential breakdown situations where negotiations are reaching a stalemate Prepare with a role play if you so 20 desire

Good luck in your role play and real life


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