Mergers and acquisitions expert

How Extraordinary Leaders Proceed Effectively During a Negotiation?

As a leader, you will always be involved in negotiations either with your partners, clients or your employees. Any negotiation usually results in one of three possible outcomes viz.: lose-lose, lose-win or win-win. While negotiating the big deals, you can neither have your own way now can you afford to surrender to your opponent.

Compromising in these situations is often critical to accelerate results, boost revenue and achieve sustainable growth.

Use the following tips to compromise effectively which creates a win-win situation for you as well as the other party.

Be a good listener

The ability to listen is one of the most profound influencing skills available to us. Successful listening forms a prerequisite for putting forth strong arguments. If you know where your opposing side is and listen to his or her points of disagreement, you will decipher their wants. This level of successful listening is what you need to construct a compromise.

Understand the gravity of the situation

Figure out how important this deal is to you. It depends on whether the deal is bringing in more revenue, sabotaging your reputation or is immaterial that you probably do not care enough. All of this will help you to decide how much time and efforts are to be invested in every deal. For critical contracts, you need to work proactively and prepare yourself for the worst possible outcomes.

Brainstorm with Relevant Parties

If you feel that the deal is going nowhere, start thinking of alternative solutions with the opposition to bring your deal back from the brink of failure. Introduce new terms, offers or bonuses in your contract which will be lucrative enough for both the parties.

Draw a mental line

If you are looking for compromise, you cannot think of winning the game as you have set yourself up for failure. Rather, you must have an idea of the things that can give up. Draw a mental line so that you may opt to refuse if the deal is going beyond it. Giving up everything you can, should only be the last resort to win the deal.

Know when to walk away

When you start discussing a compromise, always start by pitching your side, then gradually walk closer to an agreement where each of you has made some concessions. Deciding when to leave is critical to your success because settling for a little deal will cost you all your credibility as a decision maker.

Preserve your Reputation

No matter what the compromise results in, always remain professional and maintain your dignity. Since you might constantly be having negotiations with them in future, maintaining a strict code of conduct will only help you enhance your image and also undergird more favorable deals.


Following these steps every time you encounter a negotiation or an argument will make sure neither you bend on every issue, nor insist adamantly on your way. No matter what sort of compromise you are getting in, always be respectful about the other person’s point of view. The more respect you win and the more meticulous you are as a leader, the better compromises you will make in the future.

Sebastian Amieva

mergers and acquisitions consultant