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Archive for October, 2017

Managing Emotions in Buy/Sell Negotiations

Business transactions, especially mergers and acquisitions (my specialty), involve both head and heart — cognition and emotion. However, we focus far more on the price and terms in an agreement than on the emotions that almost always play a major role in the outcome, even to the point of determining whether negotiations end in a deal or a deadlock. Instead of understanding emotion and using it to our benefit either through insight or action, we often let emotion drive an outcome, usually to the detriment of everyone involved.

Photo by Tommaso Urli (sourced from Unsplash)

I am not suggesting that we leave our emotions outside the door of the conference room, if that were even possible. Emotions play a valuable role in negotiating. For example:

  • Desire pulls parties together to initiate a transaction.
  • Eagerness gives us the energy to persevere when the negotiation drags on.
  • Fear can encourage us to examine a contract more closely.
  • Disappointment can signal the need for further discussion.
  • Anger is sometimes used to make an overly aggressive party realize they need to back off.

What is important is that we maintain our poise and manage the emotions (both our own and our counterpart’s), so these emotions do not control us or the deal.

Alleviating Anxiety

In a study entitled “Can Nervous Nelly Negotiate? How Anxiety Causes Negotiators to Make Low First Offers, Exit Early, and Earn Less Profit,” Alison Brooks and Maurice Schweitzer of The Wharton School of Business at the University of Pennsylvania, conclude

Speaking at the 2017 AICPA Auto Dealership Conference in Las Vegas

The Association of International Certified Professional Accountants (AICPA) will be holding its 2017 Auto Dealership Conference October 26-27 at Caesars Palace in Las Vegas. The conference is the main event for accounting professionals in the auto dealer space, drawing both private and in-house (auto-dealership) accountants from across the country.

On Wednesday, October 25, from 1:00 p.m. to 5:00 p.m., Jonathan Wilke, CPA, Partner, Dixon Hughes Goodman; Alan Haig, President, Haig Partners, LLC; Rick Kotzen, Partner & CEO,  Capital Automotive Financial; and I will be presenting a half-day pre-conference workshop titled “Buy/Sell Workshop” — your guide to understanding:

  • Current dynamics in transaction structures and market conditions
  • Market terms related to buyer or seller legal issues in transaction structure and issues with deal diligence and manufacturer matters

In our half-day (four-hour) session, we will cover buy/sells in the retail automotive industry with a focus on the following key areas: