Dealmaking

Dealmaking is defined as the art of crafting deals through negotiations focused on an integrative, or value-creating process, rather than through distributive bargaining, or a haggling process. Dealmaking includes the range of activities both at the bargaining table and away from it that seek to bring two or more parties together toward some common end, whether it is the sale of an asset, a vendor agreement, or a merger between corporations. The Program on Negotiation emphasizes integrative bargaining in its dealmaking literature and teaches methods and techniques from this school of thought in its executive education courses.

In corporate dealmaking, much of the action happens away from the negotiating table. Successful dealmakers understand that deal set-up and design greatly influence negotiation outcomes and successfully closing a deal. Other critical factors in successfully making deals include strategic behavior – the unwillingness of one or both sides to make a best offer – psychological factors, lack of a deadline, poorly-prepared formal documents and refusal to allow the other side to make a graceful exit, even when they’ve agreed to your demands.

Strategies for successful dealmaking include tactics such as creating more value by exploring hidden interests and adding issues that appeal to your bargaining opponent. Another tactic is recruiting a third party mediator when the dealmaking process is at an impasse. Sometimes, Harvard experts find, it pays to be the first person to make an offer, while at other times, it pays to wait.

Articles from the Program on Negotiation focus on a vast array of dealmaking strategies, and explore the latest concepts such as expanding the pie, “negotiauctions,” anchors in negotiation and bartering.

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Negotiation Techniques from International Diplomacy: Lessons for Business Negotiators

Jeswald Salacuse   •  02/13/2017   •  Filed in Dealmaking

International Diplomacy

Executives rarely view themselves as diplomats engaged in international diplomacy but business negotiators often find the two fields share negotiation skills and negotiation techniques. Rightly or wrongly, diplomacy evokes images of frivolity – days spent wandering exotic capitals, nights spent cruising embassy cocktail parties. … Read More 

5 Dealmaking Tips for Closing the Deal

PON Staff   •  02/02/2017   •  Filed in Dealmaking

dealmaking tips: 5 tips for closing the deal in business negotiations drawn from negotiation case studies_250w

When you’ve made progress on certain issues but remain stymied on others in a negotiation, it’s time to take a hard look at what’s standing between you and a mutually acceptable deal. Professor Robert Mnookin of Harvard Law School and his colleagues at Stanford University have created a catalog of common barriers to agreement, including … Read More 

7 Tips for Closing the Deal in Negotiations

Katie Shonk   •  01/19/2017   •  Filed in Dealmaking

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“ABC: Always Be Closing.” That’s the sales strategy that actor Alec Baldwin’s character Blake shared in the 1992 film Glengarry Glen Ross as he tried to motivate a group of real estate salesmen. In his verbally abusive, profanity-laced speech, Blake presented a ruthless model of closing a business deal that ignores customers’ needs and cuts … Read More 

Integrative Negotiation Examples: MESOs and Expanding the Pie

PON Staff   •  01/10/2017   •  Filed in Dealmaking

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In our society, we’re bombarded with a multitude of decisions each day, beginning with the increasingly complex question of how to order our morning coffee. In his book The Paradox of Choice: Why More Is Less (Ecco, 2004), Swarthmore College psychology professor Barry Schwartz describes the contemporary phenomenon of becoming exhausted by “the tyranny of … Read More 

Case Study of Business Negotiations and Deal Making: Giving Voice to Negotiators Away from the Bargaining Table

PON Staff   •  01/05/2017   •  Filed in Dealmaking

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Sometimes negotiators focus too much on the bargaining session at hand, to the detriment of bargainers away from the negotiation table, a group whose concerns and input is just as valid as those of the negotiators themselves. Here are some negotiation tips to help make sure your bargaining strategies include the voices and concerns of … Read More 

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