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

Building Trust in Negotiations

Katie Shonk   •  03/18/2019   •  Filed in Dealmaking

building trust in negotiations

Adapted from “Strike the Right Balance Between Trust and Cynicism,” by Harvard Business School professor Max H. Bazerman, first published in the Negotiation Briefings newsletter.

 Negotiators often must choose between trusting their counterparts and being cynical of their motives. The consequences of such decisions can be serious in dealmaking: trust too much, and you’ll lose big; … Read More 

Claiming Value in Negotiation: Do Extreme Requests Backfire?

Katie Shonk   •  02/11/2019   •  Filed in Dealmaking

Claiming value in negotiation

Negotiators often wonder how they can get the biggest slice of the pie when claiming value in negotiation. Certain deal-making techniques can be useful, such as the well-known “foot in the door” technique, which is designed to get people to comply with a large request by securing their agreement to a smaller one first, and … Read More 

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

PON Staff   •  02/07/2019   •  Filed in Dealmaking

negotiations

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 

Negotiation in the news: “Victim” of Banksy’s prank laughs all the way to the bank

PON Staff   •  12/31/2018   •  Filed in Dealmaking

They say negotiation is an art, and that certainly was the case on October 5, 2018, when the mysterious artist known as Banksy turned a Sotheby’s auction into a clever—and very expensive—piece of performance art.
Drawing a crowd
An anonymous and highly celebrated street artist, British-based Banksy is known for his subversive graffiti and cheeky pranks, such as … Read More 

Redoing the deal: Lessons from the NAFTA renegotiations

PON Staff   •  09/30/2018   •  Filed in Dealmaking

During the 2016 presidential campaign, then-candidate Donald Trump blamed the trilateral North American Free Trade Agreement (NAFTA) among Canada, Mexico, and the United States for the U.S. trade deficit with Mexico and lost American manufacturing jobs. Upon taking office, Trump said he was determined to either renegotiate NAFTA or walk away from the pact. Mexican president … Read More 

Building Consensus, One Justice at a Time

PON Staff   •  08/30/2018   •  Filed in Dealmaking

When U.S. Supreme Court Justice Anthony Kennedy announced on June 27 that he would retire at the end of July, many conservatives were jubilant, while many on the political left were devastated. These opposite reactions grew out of shared beliefs: that President Donald Trump will nominate a right-leaning judge to replace Kennedy, the frequent swing … Read More 

Negotiation in the news: When forging new partnerships, get the fit right from the start

PON Staff   •  08/30/2018   •  Filed in Dealmaking

Organizations planning a merger need to come up with a concrete plan for ensuring they’ll mesh rather than clash. Facebook’s leaders and WhatsApp’s founders appeared to skip that vital step when negotiating the social media giant’s purchase of the text-messaging app in 2014—an oversight that led to mounting frustrations on both sides and, ultimately, a decisive … Read More 

Ask A Negotiation Expert: Dealmaking Secrets from Henry Kissinger

PON Staff   •  07/31/2018   •  Filed in Dealmaking

Recently, more than 1,600 international relations experts from across the political spectrum overwhelmingly rated Henry Kissinger, who served under former presidents Richard Nixon and Gerald Ford, the most effective secretary of state of the last half-century. In their new book, Kissinger the Negotiator: Lessons from Dealmaking at the Highest Level (Harper, 2018), James K. Sebenius, … Read More 

Negotiation in the News: How Congress got to “yes” on new banking rules

PON Staff   •  07/31/2018   •  Filed in Dealmaking

It’s hardly news that in the U.S. Congress, bipartisan dealmaking has been virtually nonexistent for years. That’s why it was newsworthy when Democrats and Republicans came together to negotiate changes to the Dodd-Frank law, which tightened regulations on banks and other firms following the 2008 financial crisis.
Accounting for the opposition
After President Donald Trump took office, … 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.