by dr Andrzej Jakubiec - adwokat, mediatorNegotiation is a key part of doing business.
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.
by dr Andrzej Jakubiec - adwokat, mediatorNegotiations Between Partners: How to Resolve Internal Disputes?
Why Partner Negotiations Matter?
Negotiations between partners matter. Partners do not always agree on how to run a business. It is natural that there are differences of opinion regarding strategic decisions, profit sharing, or the role of individual partners. The key is not whether there will be friction, but how we deal with it. Whether we handle it skillfully or allow it to escalate into a conflict that can weaken, destroy the common business, or permanently harm one of the partners.
Risks of Court Disputes in Internal Business Conflicts
Courts as a Last Resort
What to do when a dispute arises? Of course, the “hard” solutions in the Code are a last resort. Involving the court in resolving an internal conflict is often ineffective. It takes time, energy, and costs — and the result is distant and uncertain. Most importantly, a court dispute frequently escalates tension because a court’s role is not to find a solution satisfactory to the parties. But to decide who is right, often in a zero-one way. This can also lead to significant image losses and further tension within the company. Especially in family businesses and closely-held partnerships.
The Power of Negotiation
Why Talk Instead of Litigate
The answer to resolving partner disputes is deceptively simple and often rejected automatically: we have to talk. Conversation and negotiation are not signs of weakness but of courage, maturity, and responsibility. Negotiations show openness to the other party’s interests, potentially generating reciprocity. They allow parties to attempt a joint solutioninstead of adopting a confrontational stance.
Negotiations can be tough and effective at the same time, but they always allow parties to express themselves and present their actual interests, which are usually much deeper than initial positions.
Benefits of Negotiated Agreements
Through negotiation, an agreement worked out jointly by the parties can be reached. Unlike an imposed court verdict — which inherently involves one party feeling “wronged” — negotiations solve the problem collaboratively. This gives each party a sense of ownership and responsibility for implementation, and it avoids revenge attitudes that often occur after court proceedings.
Effective Negotiations: Professional Support and Strategy
Role of Lawyers and Advisors
Negotiations are an art and — contrary to popular belief — do not rely on simple haggling. To negotiate effectively, it is valuable to use the help of a professional — such as a lawyer — who can help prepare for the meeting, support the talks, or even conduct them directly.
Professional advisors can help clarify legal issues, identify strengths and weaknesses in positions, and shape negotiation strategy. Their role is not to impose their views, but to help the parties achieve their goals.
For more detailed methods of avoiding and resolving disputes among partners, see this practical guide on negotiations and conflict management in Polish: https://www.inforlex.pl/dok/tresc,I02.2022.046.183000502,Raport-o-sporach-wspolnikow-Wnioski-z-analizy-tysiaca-orzeczen-sadow-powszechnych.html
Step-by-Step Negotiations between partners framework
Step 1: Prepare Thoroughly for Negotiations
Preparation is critical. It is estimated that at least half of professional negotiation time is spent on preparation. Identify the goals to be achieved, gather information about the other party, and define a strategy that takes into account both interests and possible scenarios.
This may include understanding concepts such as Zone of Possible Agreement (ZOPA) — the range where rational agreement is feasible — and knowing your BATNA (Best Alternative to a Negotiated Agreement). Wikip
Step 2: Find Common Ground
During negotiations, focus on common points and solutions that can satisfy both sides. Use arguments based on facts and figures to support your position and build credibility.
Step 3: Seek a Meaningful Compromise
If negotiations do not go as planned, seek a compromise. Do not concede on all issues, but avoid rigid insistence on every point. Remember that negotiation is a process of exchange, seeking asymmetries where possible and valuable.
Smart concessions — exchanges designed to further your goals while showing flexibility — can build trust and move discussions forward without compromising key interests. MAcceler
Step 4: Communicate Effectively
Communication is key. Listen carefully and ensure you clearly understand your partners’ positions. Clarify anything that is unclear. Pay attention not only to words but also to tone of voice and body language, which affect how messages are received.
Effective communication is essential to disagree without destroying professional relationships, as highlighted by experts in Forbes.
Step 5: Utilize Legal Support During Negotiations
A lawyer can play a crucial role during negotiations. He can help to clarify legal aspects, suggest issues to raise, and propose compromise solutions. A law firm’s support can range from advisory to active facilitation.
Alternatives and Complementary Strategies
When Negotiations Need Extra Help
Sometimes negotiations benefit from neutral third-party involvement — such as mediation or an impartial facilitator — especially if emotions are strong or direct talks stall. Third parties can offer fresh perspectives and help find common ground. Partnership for Transparency
For more on alternative dispute resolution techniques, including mediation vs negotiation, see this comprehensive external resource: 👉 Conflict Resolution Best Practices for Business Partnerships (English) Partnership for
You want to read more? You’re welcome here: https://www.pon.harvard.edu/daily/dispute-resolution/managing-conflict-in-house/
Summary: Negotiations between partners as Conflict Management
Effective negotiations between partners are challenging but essential for reaching compromise and avoiding conflict. Preparation, communication, finding common ground, seeking compromise, and appropriate professional support are the pillars of successful negotiation.
Involving the court should always remain the last resort. A court case is expensive, time-consuming, and uncertain. It decides who is right but rarely deals with the deep-seated causes of conflict. The true motivations and interests that underlie disputes are often inaccessible to a court, but negotiable at the table.
Negotiations between partners: Internal Links to my articles in polish
- Co robić, gdy druga strona nie chce rozmawiać? https://jakubieciwspolnicy.pl/narzucenie-rozwiazania/
- Jakie są przyczyny konfliktów w firmach rodzinnych? https://jakubieciwspolnicy.pl/spory-w-firmach-rodzinnych-jakie-sa-ich-przyczyny/
Talk Before the Conflict Escalates
If you are facing a dispute between partners, early negotiation support can significantly reduce risks and costs. Professional preparation and structured negotiations often allow partners to protect the business, their relationships, and their reputation.
Contact us to discuss your situation confidentially:
📩 Email: kancelaria@jakubieciwspolnicy.pl
📞 Phone: +48 536 270 935
Our law firm supports partners at every stage of negotiations. We prepare the strategy to active participation in talks or leading negotiations on behalf of clients.