Easy Negotiation Techniques

As I look around my basement, I realize that maybe I’m hanging on to too much stuff. When I trade for goods and services (some call that “negotiating”), I realize I’m also pretty good at hanging on to my profit when I’m the seller, and my money when I’m the buyer. How good are you at hanging on to what you already have? One simple technique can make you much better at it.

This works even when no money is trading hands. Perhaps just your time is involved. Maybe your boss wants you to take on “just one more thing.” Or you’ve been scheduled for one more meeting. Pretty soon you’re overwhelmed and kicking yourself for saying “Yes” a few too many times. Maybe you can’t say “No” either, but there is another option.

Bad Negotiating Exemplified

Let’s imagine for a moment you’re a seller engaged in a dialog with a potential buyer that goes like this:

- Buyer: “You’re higher than your competition. What can you do when you sharpen your pencil?”

- Seller: “I am authorized to match our competition’s price.”

- Buyer: “Great! Unfortunately, I see your standard shipping is 2 weeks, and I need it on Tuesday. Can you do that?”

- Seller: “I can expedite shipping for you. You can have it by Tuesday if you order now.”

- Buyer: “Nice! But I won’t be able to use it without the accessories kit. Will you include it at no charge if I buy?”

- Seller: “Sure, I’ll do that just for you, because you’re special.”

Let’s stop our example there, although the dialog (and the concessions) certainly didn’t stop there. Notice that at no time did the Buyer commit to the purchase, despite the fact that the Seller has discounted away profit and increased costs by expediting shipping and giving away accessories. The Buyer is “on a roll”; why wouldn’t they keep asking for more concessions?

They will, because they are grinding, a Read more »

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What is meant by Hostile Takeover?

Hostile Takeover is a type of acquisition in which, the company being purchased (Target Company) does not want to be purchased at all, or does not want to be purchased by a particular buyer (Acquirer) that is making a bid. In other words, the Acquired intends to gain control of the Target Company and force it to agree to the sale. The word ‘hostile’ in dictionary means ‘unfriendly, aggressive’.

Hostile Takeovers is a type of method used for Corporate Restructuring. There are other methods like Mergers & Acquisitions, Leveraged Buyout, Spin offs, etc. through which Corporate restructuring may be done.

In India, hostile takeover is a dreaded word, may be since it is a method used which is not democratic in nature and somewhat unpleasant for the management of a target company.

Why a hostile takeover?

There are several reasons why a company might want or need a hostile takeover. The major reason may be of financial gain instead of economic or business gain.

The acquiring company may think that the target company can generate more profit in the future than the selling price. E.g. If a company can make $100 million in profits each year, then buying that company for $200 million makes sense. That is why it is observed that so many corporations have subsidiaries that do not have anything in common — they were bought purely for financial reasons.

Legal Angle:

Companies Act 1956 does not expressly mention about takeovers or acquisitions. It primarily, only talks about Mergers & Amalgamations through Section 391-396.

SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997 has been enacted by the Securities and Exchange Board of India which deals with acquisition of shares, takeovers, etc.

Neither the term ‘takeover’ nor the term ‘hostile’ has been expr Read more »

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In the last negotiation lesson, I expounded on the benefits that proper positioning has and the role it plays, before, during, and after negotiating. This lesson expands upon that theory and takes into account how any negotiator can enhance the outcome of a negotiation by using a few debating techniques.

Positioning:

First, I’d like to cite an experience I encountered at a conference at which I recently spoke. There was a very powerful speaker who spoke on the topic of leadership. I heard him speak in the past, but this time I was moved by his words to the point that I wanted to purchase the DVD set he offered for the continuation of the expansion of one’s mind. As luck would have it, a lady in front of me purchased the last set. She heard me exclaim how I couldn’t believe the bad luck I had to miss purchasing the set. Then, this well poised and well spoken women, turned to me and said, ‘you can have it’. I looked at her suspiciously for about 30 seconds and in my mind, I was wondering what she might want in return (read between the lines if you wish. she had already paid for the set and she was giving it to me for free). It was as though she read my mind when she said, ‘there are no strings attached’. She gave me her contact information and said I could send the set to her after I’d listened to it. As it turned out, this woman whose name is Tori really didn’t want anything in return, but due to her generosity, I’ll assist her in her endeavors in the future.

In the above example of positioning, Tori was not seeking anything from me, but think of what you can do before entering into a negotiation that can endear you to whom you’re negotiating.

After you endear yourself, how can you utilize debating techniques to enhance your negotiation position? The following are a few debating techniques and how they are related to neg Read more »

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