Monday 13 November 2017

Deal or no deal?

I had lunch with a lovely chap yesterday who helps people sell their businesses for a living. One of his many insights was that the people who get the best deals are ready to sell but also ready to continue running their business if the offer on the table isn't good enough. The other side of the coin is where the seller has had enough and is desperate to sell. Inevitably they end up getting a poor deal.

So the lesson is that if you are thinking of exiting from your business in the future, it's never too early to start thinking about it and plan your strategy. 

The topic of the moment is Brexit and there has been much debate about 'hard Brexit' and 'Crashing out out of the EU without a deal'. The reality is, from a negotiating perspective, the UK needs that alternative or they have an even weaker hand in negotiations with the EU.

In their acclaimed book about principled negotiation,'Getting to Yes', Fisher and Ury describe the concept of a Best Alternative to a Negotiated Agreement (BATNA). They argue that it is foolish to enter into an negotiation without a BATNA and you should work hard to make your BATNA as attractive as possible. This gives significant leverage in a negotiation and allows the holder to walk away until a better offer is put forward.

So if you are in a negotiation, be it a multi-million pound deal or a relatively minor customer complaint, think about your BATNA and be prepared to use it. It may help you achieve a better outcome.

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