Difficult deal

Navigating difficult deals often involves complex challenges, such as dealing with multiple stakeholders, managing high emotions, and encountering manipulation. Here are some key insights from experts on handling tough negotiations:

1. Complex Multi-Party Negotiations:

   • Stephanie Cohen recounts working on the Fiat Chrysler deal, which required negotiating with multiple governments and managing intricate dynamics. The presence of multiple stakeholders, including the US and Canadian governments, added layers of complexity. Despite its challenges, it was one of the most rewarding deals due to its positive outcome for the company and stakeholders 1.

2. Dealing with Tough Negotiators:

   • Chris Voss emphasizes the importance of understanding the pressures faced by procurement professionals, who often operate under significant internal strain. Recognizing the human dynamics involved in negotiations can help manage difficult interactions without burning bridges. Furthermore, Voss cautions against "fake deals," where the other party might be using you as a competing bid or for free consulting 2.

3. Bad Faith Negotiations:

   • Andrew Wilkinson notes that the hardest negotiations often involve parties acting in bad faith. This includes manipulating information or not being upfront about their intentions. He stresses the need to avoid making deals with dishonest individuals, as such deals inevitably fail 3.

     Navigating Complex Deals

     Patrick O'Shaughnessy

     Stephanie Cohen

     Stephanie shares her experience working on the challenging Fiat Chrysler deal, navigating multiple governments and negotiating strategies. Despite the complexity, the deal was rewarding and showcased the company's ability to pay off the US government and continue producing desired products while employing many people.

     

     Invest Like the Best

     Stephanie Cohen – The Evolution of M&A and Corporate Strategy - [Invest Like the Best, EP.131]

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4. Emotional Rollercoasters:

   • Philip Williams describes the emotional turmoil of a stalled business sale. He advises always running your business as if the deal might fail, which helps maintain operational focus and resilience during uncertain times 4.

5. Managing Intractable Individuals:

   • Chris Voss also highlights the challenge of working with individuals who haven't thoroughly considered their proposals or cannot deliver on promises they make. Such individuals can cause significant delays and complications as their deals often collapse internally 5.

These insights underscore the importance of preparation, understanding human dynamics, and maintaining integrity when navigating difficult deals.