Whether you’re looking to acquire or sell a business, an M&A negotiation can be a complex and delicate process. Here are some useful tips to consider.
- Define what you want to achieve from the outset of the negotiation – what is important to you, including your ‘red lines’ and ‘walk aways’?
- Make the first offer to ‘anchor’ your position. Where possible, we will utilise data to formulate a precise offer
- Avoid agree points in isolation. Instead, make them conditional on getting something in return
- Make concessions in instalments – they mean more this way
- Don’t let the fear of sunk costs influence your position
Overall, for a deal to be successful, both parties need to walk away from the M&A negotiation feeling like winners on the matters most important to them, and a fair compromise should be reached on the less important points.
If you would like to discuss an M&A strategy in the context of your own business, get in touch with our Corporate Finance team on 01788 539000 or 0116 261 0061, or email [email protected].