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Top eight insights from my buy-side M&A negotiation practice
In a recent call, Florian Bauer asked me to prepare a short video training for his students with some insights from my buy-side M&A negotiation practice.
Before I share with you my personal M&A negotiation practice, please note my disclaimer: Don't expect too much. Every M&A transaction and negotiation is very individual and therefore cannot be made successful with a cookbook. Therefore, use my recommendations with diligence and feel free to call me if you want to prepare for an M&A process.
Lesson Learned #1: starts with the negotiation concept: My experience is that the larger the transaction, the more professional and similar the negotiation concept.
Lesson Learned #2: Take enough time to prepare yourself with sufficient people and data research and consistent due diligence results.
Lesson Learned #3: Avoid M&A Fever - Develop and evaluate realistic and strong alternatives that you will choose if negotiations fail.
Lesson Learned #4: Take the Lead in Negotiations and Play Fair.
Lesson Learned #5: Strictly manage communication channels throughout the M&A process and document everything.
Lesson Learned #6: Bring Deal Breakers to the Table Early and Start with the Big Picture.
Lesson Learned #7: Bring your issues and concessions forward strategically. Don't bid against yourself, and don't just focus on prices, but on other terms as well.
Lesson Learned #8: Stay cool when the other party tries to use unfair negotiation tactics.
