Offering a great product (or service) is the best way to get deals done, but even great products don’t sell themselves. Craig Mullett, a merger and acquisition veteran at Branison Group, shared his “Five Ps” for closing big deals with Inc.com:
Prepare – Researching a prospect’s interests and possible positions, as well as accurately understanding your own, is essential. Mullett compiles detailed information on the seller’s needs and timeline, the buyer’s strategic/financial options and possible negotiation outcome, then visualizes all of these factors in a deal diagram and assigns roles to help his team rapidly respond in the next phases.
Probe – Clarity is key for both sides, and should be done before and during negotiations. Mullett recommends sending a draft agenda and ask for comments. The changes the buyer makes will identify points that are important to them.
Possibilities – Expanding the range of possible deal outcomes increases both the likelihood and robustness of any deal. Sure, price is important, but it’s not the only point of interest for both sides. Mapping out non-monetary issues, such as payment options and certainty of the timeline to closing, can be used to confirm what is important to the buyer and framed to help close a deal.
Propose – Seeing the proposal come together jointly, then translating the agreed concepts into a final detailed proposal, sets a positive momentum between the parties towards partnering.
Partner – Using the negotiation process to build rapport and develop contract mechanisms to encourage alignment helps achieve the buyer’s and seller’s long-term objectives.
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