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: Am I Using Deceptive Tactics in Negotiation?

PON Staff   •  08/17/2021   •  Filed in Dealmaking

deceptive tactics in negotiation

Ethical negotiators try not to use deceptive tactics in negotiation situations. However, there’s one negotiation technique that may not feel deceptive, but it can slip under the radar and cause problems later. We spoke with Francesca Gino, Tandon Family Professor of Business Administration, Negotiation, Organizations and Markets Unit at Harvard Business School. We asked her … Learn More About This Program

Bipartisan Agreement Proved Elusive in 2017 Immigration Negotiations

PON Staff   •  05/24/2021   •  Filed in Dealmaking

People holding signs at a protest or rally that say "immigrants are great" - Bipartisan Agreement Proved Elusive in 2017 Immigration Negotiations

On September 5, 2017, President Donald Trump announced that in six months he would phase out Deferred Action for Childhood Arrivals (DACA), the Obama-era policy that has shielded from deportation about 800,000 people brought to the United States illegally as children. Members of Congress seeking permanent protections for the so-called Dreamers covered under DACA then … Learn More About This Program

Dear Negotiation Coach: How to Negotiate Price and Start Off on the Right Foot

PON Staff   •  05/11/2021   •  Filed in Dealmaking

how to negotiate price

Do you know how to negotiate price? Is there a better way to approach this type of negotiation that differs from other negotiation strategies? In this week’s Dear Negotiation Coach column, we answer the question.

QUESTION

I’m trying to decide whether to make the first offer in a price negotiation. I’ve heard arguments in favor of both … Learn More About This Program

How to Get a Great Deal When Trust is Low

PON Staff   •  04/01/2021   •  Filed in Dealmaking

Negotiators from Western cultures, such as the United States, tend to be trusting. They’re often open to sharing information with counterparts, and expect ideas to flow freely. But in many other cultures, negotiators tend to be less trusting and more cautious about sharing information about their interests.

Of course, there are many ways to build trust … Read How to Get a Great Deal When Trust is Low

When Negotiations is a Love Song

Katie Shonk   •  04/01/2021   •  Filed in Dealmaking

On Valentine’s Day, 1945, Matilda Genevieve Scaduto, the 20-year- old granddaughter of Sicilian immigrants, was working the elevator at a Milwaukee hotel when she met a traveling violinist named Boudleaux Bryant. He started calling her Felice, saying it suited her better than Matilda because she was happy all the time, according to American Songwriter magazine. … Read When Negotiations is a Love Song

Why It Pays for Powerful Parties to Negotiate

PON Staff   •  02/28/2021   •  Filed in Dealmaking

movie theater

In recent years, the U.S. film industry has avoided dealing with a mounting inefficiency. Historically, theater companies have negotiated with film studios for the right to screen movies for three months before they can be released in other formats, including streaming, on demand, and DVD. Staggering the release of films in different formats has benefited studios … Read Why It Pays for Powerful Parties to Negotiate

Making the best of pandemic-era deal disruptions

PON Staff   •  01/31/2021   •  Filed in Dealmaking

Facemask

This past fall, three grown children set about helping their mother, Mina, find a memory care facility for John, their 85-year-old father. John’s previously mild dementia had progressed rapidly during the Covid-19 pandemic, to the point that he could no longer live safely at home.

John’s children gathered a short list of affordable long-term care facilities … Read Making the best of pandemic-era deal disruptions

Negotiation in the News: The NBA tries to make the best of another (projected) bad season

PON Staff   •  12/31/2020   •  Filed in Dealmaking

Basketball with mask

In negotiations across the world, financial troubles brought on by the Covid-19 pandemic have left parties squabbling over smaller and smaller pies. The silver lining? Negotiators may have little choice but to get a deal done, and awareness of this reality can motivate creative thinking and cooperation. Negotiating the terms of their upcoming season, the National … Learn More About This Program

MESO Negotiation Strategies and Negotiation Techniques

PON Staff   •  11/24/2020   •  Filed in Dealmaking

meso negotiation

MESO negotiation techniques for negotiators include creating value at the bargaining table by identifying multiple proposals of equal value and presenting them to your counterpart simultaneously. By making tradeoffs across issues, parties can obtain greater value on the issues that are most important to them. But how can you be sure you’re making the right … Learn More About This Program

In Employment Contract Negotiation, “No Haggling” Isn’t the Answer

Katie Shonk   •  11/23/2020   •  Filed in Dealmaking

contract negotiation

Back in spring 2015, Ellen Pao, the former CEO of social networking and news website Reddit, revealed in an interview with the Wall Street Journal that her company had taken a bold move in its efforts to create an “equal opportunity environment for everyone” at the company. Specifically, Reddit no longer negotiates salary with job … Learn More About This Program

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