Top eight insights from my buy-side M&A negotiation practice

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.