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Introduction
Deal negotiation is the process by which a buyer and a seller reach a compromise and settle any differences that might arise during the process of acquisition or a merger. Various forms of negotiations are used. This includes internal affairs, the legal system, government, industrial dispute or domestic relationships.
In the course of the negotiation, there might be some kind of disagreement resulting in dissatisfaction from one party or both parties. Therefore the point of negotiation is to try to reach agreements without causing future barriers to communications. In order to achieve the desired outcome it is important to follow a structured approach to negotiation. This structured approach are (1) Preparation (2) Discussion (3) Clarification of goals (4) Negotiating towards a win-win outcome (5) Agreement and (6) Implementation of course of action
Preparation
This is about setting the rules that will govern the meeting and also about the time frame that will be used in the meeting in order to avoid discussions on unnecessary matters and also avoiding long arguments. At this stage both parties, that is, the buyer and seller must have pertinent facts of the situation so as to clarify their own position.
Discussion
During the discussion stage, questioning, clarifying and listening are key skills needed. It is important to listen much than talking and also putting down notes in case there is the need for further clarification. Also at this stage, both parties have equal opportunity to put forward their case as they see it.
Clarifying Goals
Both parties have equal chance to ask for clarification of terms and conditions that baffles their minds. This will help to establish a common ground during negotiation.
Agreement
A consensus must be reached by both sides on issues raised and discussed in relation to the acquiring of the business without any resentment.
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