01 Oct 10 Common M&A Mistakes to Avoid (#8 of 10)
8. Ignoring the psychological aspects of negotiating
Psychology is a big factor in negotiations between buyers and sellers. This is amplified when family businesses are involved because of the interplay between complex personal, family, and business relationships. The participants need to empathize with their counterparts to understand the other side and be able to move towards a win-win outcome. In many cases it’s not just about the numbers. That doesn’t mean that one side needs to cave in or lose its bargaining power, but removing unnecessary barriers and maintaining a positive attitude will give the deal a better chance of being completed.
Take home message: use the right negotiating approach.