Private equity deal negotiations are about "bridging common ground" with your new business partners
Deal making is about setting the foundation for your relationship dynamic going forward:
> you either find an agreement you can all live with, and you all make money going forward together.
>> or there's no deal, and everyone lives.
There's zero upside to brining an energy that you're on opposite sides, with opposing agendas --
>>> this is not a competitive face of to carve up a zero sum pie.
PE Partners make money by getting deals funded which work out over time.
Negotiating hard on the way in often results in:
i) losing the deal
ii) having your new management team on high alert, and a bit worried about who they're in bed with
It's much more important to use the deal process to establish a sense of "aligned interests" and mutual care.
The negotiations, collaborations, disagreements and discussions that happen over a life of a deal are much more important than the first negotation that's had at the start of a deal.
How can you think about bidding / deal negotiation differently?
#executivecoaching #privateequity #investmentbanking #growthequity #negotiation
You are not "hostage negotiator" Chris Voss. You are not negotiating with terrorists!
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