The Art of Negotiation

Unexpected Reversals

Investment firm manager Jay Sheldon and his partners paid $8 million for a Midwest cable TV company. After a year of profitable operations, they decided to broaden their business. They approached a cable company in a nearby city, planning to offer $11 to $12 million for the firm. The Sheldon group and the cable company’s owner could not agree on a price. “I didn’t post a For Sale sign,” said the owner. “You came to me. You’d have to dump $15 million in cash right on my desk to tempt me. And I’d probably kick myself if I took it.”

For most negotiators, this would be a dead end. Sheldon replied, “If you think your system is worth $15 million, how about ours?” The man replied: “About $14 million.” Sheldon reversed the negotiation dynamic. He became the seller, not the buyer. Thanks to his quick thinking, Sheldon and his partners sold their firm for far more than they paid for it. Sheldon’s adaptability and creative thinking distinguish a master negotiator.

Improvisation

No one can predict how any negotiation will unfold. You can’t dictate the other party’s attitudes, ideas or agenda. Unforeseen objections and special opportunities will...