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.

See full description

Dealmaking: Relationship Rules for Dealmakers

PON Staff   •  01/06/2020   •  Filed in Dealmaking

dealmaking

Here are some concrete guidelines for fostering a strong relationship between deal making partners, drawn from The Global Negotiator: Making, Managing, and Mending Deals Around the World in the 21st Century, by Tufts University professor Jeswald W. Salacuse: … Read More 

Changing the Rules of the Game

PON Staff   •  12/31/2019   •  Filed in Dealmaking

When industry disrupters and established firms face off at the negotiating table, they’re likely to have different ideas about what’s negotiable and what’s not. Such was the case when screening service Netflix and two major U.S. theater chains tried to negotiate a wide theatrical release for The Irishman, the Netflix-financed Martin Scorsese film. Their impasse … Read More 

Don’t get schooled in your next negotiation

PON Staff   •  12/31/2019   •  Filed in Dealmaking

Chicago mayor Lori Lightfoot, a former federal prosecutor and head of the Chicago Police Board, was elected in 2018 as a reformer calling for big improvements to Chicago’s chronically underfunded public schools, including smaller class sizes, and more nurses and social workers. One of Lightfoot’s first major challenges after being sworn in on May 20, 2019, … 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 

Negotiating for a brighter future

PON Staff   •  10/31/2019   •  Filed in Dealmaking

For decades, the Colorado River has been in trouble. The river supplies water to 40 million people and five million acres of farmland in seven U.S. states and Mexico. But following 19 years of drought and population growth, the water levels of the river’s largest reservoirs, Lake Mead and Lake Powell, have sunk to record lows. … Read More 

Maximizing Attention In Negotiation

PON Staff   •  08/31/2019   •  Filed in Dealmaking

The New York state Assembly and Senate are on a roll. They’ve approved 935 bills this session, 50% more than in recent years and the highest number since 2006, according to the New York Public Interest Research Group. With a wave of progressives enabling Democrats to control the state Senate for the first time since 2010, … Read More 

Making Business Deals that Thrive Across Cultures

Katie Shonk   •  06/17/2019   •  Filed in Dealmaking

making business deals

The 1998 merger of German automaker Daimler-Benz and the American Chrysler Corporation at first seemed like a match made in heaven, but the honeymoon wore off as the two cultures that made up DaimlerChrysler began to clash. The Americans’ informal behavior, such as using first names rather than titles, made the Germans uncomfortable, while the … Read More 

Would you like us to inform you when new posts become available?

We hate spam as much as you do. You have our promise not to sell or share your email address — ever! Please read our privacy policy.