We negotiate not only with external contractors, but also with our partners and others “inside” the company. Where there are close relationships, naturally disputes and conflicts occur. In case of disputes between partners, negotiations are particularly important, because the resulting agreement
can have a decisive impact on the company’s future.

On the other hand, It’s absence can cause serious trouble with decision-making deadlock and
even business collapse. Preparation for negotiations is crucial to achieving positive results. Below I present some basic strategies and tools that can help you prepare for negotiations.
Preparing for negotiations

Before starting negotiations, it is important to thoroughly research the situation. The basis is to analyze the company’s articles of association, the content of the resolutions passed, the investment agreement and – of course – the applicable legal regulations.

In case of disputes between shareholders, it is necessary to carefully analyze the causes of the dispute, try to discover the interests of the parties, that are deeply “underneath” the positions presented by them.

It is good to find out what the financial and personal of the accomplice, since often events in these areas – seemingly unrelated to the company’s operations – have a direct influence their business actions.
Trying to find answers at the source of a partner’s attitude can fundamentally change our approach to the presented by him superficial behavior and lead to the following. Instead of haggling, we try to resolve the situation together, which is, after all, difficult for all parties.

Example: It is worth finding out if a partner wants to sell his shares because he plans to tie up with a competitor, or because he needs money for his child’s treatment. Or perhaps he is already tired of working and wants to retire from business? Or maybe the reason is yet another – imagine that he has learned something that, in his opinion, makes the company’s situation very difficult and
simply wants to “escape” from it?

Depending on what need of the shareholder is to be satisfied by the sale of shares, our optimal reaction for us (and for him as well) may be completely different. Despite the fact that this is a share sale, we are dealing with extremely different personal and business arrangements, so different should be the steps towards solving a common problem.

As part of the preparation for negotiations, always take the time to Identify BATNA (Best Alternative to The Negotiated Agreement) and WATNA (Worst Alternative to The Negotiated Agreement), that is best and worst alternatives to the negotiated agreement.

So you have to compare what will happen if you we find an agreement with a partner and what can happen, if we don’t reach it. Then we will be able to assess whether there is any point in seeking an agreement at all, and we will set ourselves it’s lower limit. Of course, it is essential to take into account also the probability of the alternatives coming to fruition.
Determine your goals
Before negotiating, it is also important to define your goals and limits. You need to know what you want to achieve and how far you can go. Setting goals will enable you to focus on
the most important issues and avoid unnecessary compromises. In doing so, it is worth remaining flexible, as the information we obtain during the negotiations may affect the validity of earlier assumptions.
Develop an action plan

Planning is key to achieving positive results.
Developing an action plan will make it possible to determine what steps need to be
be taken to achieve the goals. The plan should include such elements such as a timeline of activities, interlocutors, budget and how to conduct the negotiations. It is also necessary to determine,
what tools of direct and indirect influence we have towards the partner. Conversely, how he can influence our decisions. Also in non-obvious ways. As part of developing a plan, you can also consider alternative options, such as changing the organizational structure, changing the articles of association of the company or changing the proportion of shares. It is important that the plan be
realistic and takes into account both goals and boundaries that should not
should be exceeded during negotiations.

It is necessary to listen

An important tool in negotiations is also the ability to listening and the ability to empathize. The partners should listen their arguments and try to understand the other’s point of view. In this way, they will have a better chance of reaching agreement that will be satisfactory to both parties.

Summary

Negotiations between partners are an integral part o of running a company. Preparing for negotiations and having strategy and tools will allow you to achieve much better results than actions that are ill-considered and chaotic, subject to emotions or aimed only at demonstrating one’s inflexibility and willpower. It is important to conduct negotiations in a professional, constructive and empathetic, taking into account both your goals and those of your negotiating partner.