Top Ten Business Deals of 2013: Omnicom – Publicis
The merger of two giants in the advertising industry, Omnicom and Publicis, announced in July, marked the creation of the largest ad company in the world. … Learn More About This Program
PON – Program on Negotiation at Harvard Law School - https://www.pon.harvard.edu
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.
The merger of two giants in the advertising industry, Omnicom and Publicis, announced in July, marked the creation of the largest ad company in the world. … Learn More About This Program
With home sales heating up in some U.S. regions in 2013, homebuyers faced competition they haven’t seen since before the real-estate bubble burst, and it showed up in the form of packed open houses, multiple bids above the asking price, and all-cash offers. … Learn More About This Program
Office Depot’s $976 million, all-stock acquisition of OfficeMax, announced on February 20 and completed on November 5, was widely praised as an important step toward consolidating the office-supply industry, which has suffered from a glut of stores amidst competition from online retailers and declining demand for paper and ink. … Learn More About This Program
On February 14, 2013, the news broke that Berkshire Hathaway, the conglomerate run by Warren Buffett, was planning to purchase H.J. Heinz—and its iconic Heinz ketchup—for $23 billion. Joining Berkshire Hathaway in the acquisition was 3G Capital Management, a Brazilian-backed investment firm that owns a majority stake in Burger King. As such, the deal marked … Learn More About This Program
On October 30, the news came that Big 4 accounting firm PricewaterhouseCoopers had reached a deal to purchase the consulting firm Booz & Company with the goal of beefing up its management consulting business. … Learn More About This Program
In early December, super-agent Ari Emanuel’s William Morris Endeavor talent agency and private equity backer Silver Lake won a bidding war for the sports and media talent agency IMG Worldwide in a $2.3 billion deal.
Emanuel, whose notoriously ruthless negotiating and management style was parodied in Jeremy Piven’s Ari Gold character in the TV show Entourage, … Learn More About This Program
In his best-selling novel Blink, Malcolm Gladwell scans the psychological literature and uncovers fascinating nuggets of knowledge.
He describes people who can assess the integrity of a work of art within seconds, predict the likelihood that a couple will get divorced based on a short conversation, and assess their romantic interest in another on a “speed … Read Dealmaking: Why It’s Tempting to Trust Your Gut
When two people share the same motive, they fall prey to the same flaws and reinforce each other’s failings. Consider a labor negotiation in which the chief management negotiator withholds information about revenue projections, while the labor leader holds back details about workforce sentiment. Impasse is the predictable result. When you’re negotiating with a fellow … Learn More About This Program
A five-year old American manufacturer of medical equipment has just secured a patent on its primary product, a new kind of heart monitor. The potential market is even stronger than the company imagined, yet its second round of venture capital funding is coming to an end. A few other manufacturers are about to go public … Read When You Shouldn’t Go It Alone
Even with these precautions in place, there will be times when one side demands renegotiation of a deal. Here are some guidelines on how to proceed. … Read Dealmaking: What to Do After the Deal Breaks Down
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