Dealmaking

Dealmaking is defined as the art of crafting deals through negotiations focused on an integrative, or value-creating process, rather than through distributive bargaining, or a haggling process. Dealmaking includes the range of activities both at the bargaining table and away from it that seek to bring two or more parties together toward some common end, whether it is the sale of an asset, a vendor agreement, or a merger between corporations. The Program on Negotiation emphasizes integrative bargaining in its dealmaking literature and teaches methods and techniques from this school of thought in its executive education courses.

In corporate dealmaking, much of the action happens away from the negotiating table. Successful dealmakers understand that deal set-up and design greatly influence negotiation outcomes and successfully closing a deal. Other critical factors in successfully making deals include strategic behavior—the unwillingness of one or both sides to make a best offer—psychological factors, lack of a deadline, poorly-prepared formal documents, and refusal to allow the other side to make a graceful exit, even when they’ve agreed to your demands.

Strategies for successful dealmaking include tactics such as creating more value by exploring hidden interests and adding issues that appeal to your bargaining opponent. Another tactic is recruiting a third-party mediator when the dealmaking process is at an impasse. Sometimes, Harvard experts find, it pays to be the first person to make an offer, while at other times, it pays to wait.

Articles from the Program on Negotiation focus on a vast array of dealmaking strategies and explore the latest concepts such as expanding the pie, “negotiauctions,” anchors in negotiation, and bartering.

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Dear Negotiation Coach: Deal Structuring and Negotiating with “Bad Acts”

PON Staff   •  06/21/2022   •  Filed in Dealmaking

deal structuring and negotiating

Deal structuring and negotiating can feel challenging in the best of situations. But when you’re dealing with “bad acts,” there are additional factors to consider when you structure your negotiation strategy. This is what one reader asked about when facing a deal to buy out a company. Here’s their question:
Q: I work for an international … Learn More About This Program

Dear Negotiation Coach: Is Age a Factor to Bargaining in Good Faith?

PON Staff   •  04/12/2022   •  Filed in Dealmaking

bargaining in good faith

Perhaps even more than in person, bargaining in good faith is essential in negotiations conducted through email. With no visual cues or body language, there can be numerous assumptions, both beneficial and otherwise, that can impact a deal between two people. Such was the case in a recent question we received regarding whether age should … Learn More About This Program

New Negotiation Tactics for Your Multiparty Negotiation Toolkit

PON Staff   •  12/09/2021   •  Filed in Dealmaking

negotiation tactics

“Confessionals.” “Informal informals.” “Indabas.” Delegates from the 196 nations participating in the U.N. Climate Change Conference, held in Paris at the end of 2015, cycled through an eclectic variety of negotiating formats in their race to make binding commitments to lower greenhouse-gas emissions. According to media reports, the participants’ willingness to shake up the complex … Learn More About This Program

Consensus Building on the Court?

PON Staff   •  11/01/2021   •  Filed in Dealmaking

Consensus Building

When making decisions, groups often hold a simple vote and allow the majority to get its way. But groups that instead work to reach decisions through consensus building tend to reach agreements that are more stable, more efficient, and wiser than groups that make decisions through majority rule, write Lawrence E. Susskind and Jeffrey L. … Read Consensus Building on the Court?

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