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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For Price Negotiators, Preparation is the Key to Success

Katie Shonk   •  11/12/2019   •  Filed in Dealmaking

For Price Negotiators Preparation is the Key to Success

Some cultures have a long tradition of haggling—bargaining back and forth about the price of an item—in markets and bazaars. By contrast, in the United States and many other countries, haggling between buyers and sellers is an under-practiced skill. You might routinely pass up opportunities to haggle in situations where financial negotiations are not the … Read More 

How to Counteroffer in Business Negotiation

Katie Shonk   •  11/11/2019   •  Filed in Dealmaking

counteroffer in business negotiation

Imagine you’ve received a salary offer for a new job that’s less than you’d hoped for, or a client has delivered a “take it or leave it” ultimatum. While there is ample advice available to negotiators on how to make the first offer in negotiation, the question of how to counteroffer in business negotiations often … Read More 

5 Dealmaking Tips for Closing the Deal

PON Staff   •  11/05/2019   •  Filed in Dealmaking

dealmaking

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 dealmaking barriers to agreement, … Read More 

Deal-Making Negotiation Strategies: Short on Cash? Try Bartering

PON Staff   •  10/15/2019   •  Filed in Dealmaking

bartering

In an economic downturn, negotiation opportunities sometimes dry up because parties think they have nothing left to give. During times like these, bartering flourishes. This article will help you decide how and when to include bartering as a component of your negotiations. Here are four guidelines to help you bargain successfully at the negotiation table. … Read More 

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