Restructuring Negotiations
Deal making is the primary job of every salaried employee, whether an office boy or the MD. Everyone is selling something to someone. And in the process, there are plenty of back and forth, negotiations, seeking approvals and getting to the *yes*.
This process of selling or deal making is an art. There are numerous books which can help you enhance your skill sets and change your approach to have a successful closure.
But there are a very few good reads or experts on restructuring deals. In my experience, restructuring and consequently the renegotiation that follow can test anyone's patience. Here are a few pointers on why re-negotiation is tougher than fresh deal making in a corporate environment:
1. Experiences with the partners: When a deal is fresh, there is hardly any experience between the partners. The relationship is fresh and like most others, there is plenty of excitement. Post the deal, as time goes on, there are ups and downs in the agreements. The downs really leave a bad taste in the mouth as the partners aren't sleeping together much and there is no incentive to back down.
2. Win Loss Situations: Most re-negotiations start happening when something has gone wrong in the original deal. Generally, one of the partners will have a feeling of betrayal, who will start the process of restructuring by making a fuss about the original deal. Regular complaints by the hurt partner are common in such scenarios. The other partner, usually will take light of these complaints, until it becomes a wildfire. Which brings us to the outstanding situation of Win-Loss.
3. Going back in time: As most of the things have been agreed ages ago and the people that have committed to things might not be present, it becomes tougher to separate facts from fiction. What one might have promised in principal, might not be captured correctly in legal mechanisms. Going back in time is tough for everyone. There are plenty of mistakes and regrets one might not wish to hark back on. These errors, if there in the deal, might be seen as a lucrative opportunity by some to amend things.
4. Agreeing things: Since one partner has an upper hand and the only way for David to force this is legal proceedings, agreeing upon things poses a huge risk. What might be important for one, might seem trivial for the other. Time is of no essence here. Restructuring moves like a snail in oil.
Being a part re-negotiations and on both the sides, I feel that patience is the key virtue here. One needs to show resilience and fortitude of the highest order in order to make the deal afloat once again.
This process of selling or deal making is an art. There are numerous books which can help you enhance your skill sets and change your approach to have a successful closure.
But there are a very few good reads or experts on restructuring deals. In my experience, restructuring and consequently the renegotiation that follow can test anyone's patience. Here are a few pointers on why re-negotiation is tougher than fresh deal making in a corporate environment:
1. Experiences with the partners: When a deal is fresh, there is hardly any experience between the partners. The relationship is fresh and like most others, there is plenty of excitement. Post the deal, as time goes on, there are ups and downs in the agreements. The downs really leave a bad taste in the mouth as the partners aren't sleeping together much and there is no incentive to back down.
2. Win Loss Situations: Most re-negotiations start happening when something has gone wrong in the original deal. Generally, one of the partners will have a feeling of betrayal, who will start the process of restructuring by making a fuss about the original deal. Regular complaints by the hurt partner are common in such scenarios. The other partner, usually will take light of these complaints, until it becomes a wildfire. Which brings us to the outstanding situation of Win-Loss.
3. Going back in time: As most of the things have been agreed ages ago and the people that have committed to things might not be present, it becomes tougher to separate facts from fiction. What one might have promised in principal, might not be captured correctly in legal mechanisms. Going back in time is tough for everyone. There are plenty of mistakes and regrets one might not wish to hark back on. These errors, if there in the deal, might be seen as a lucrative opportunity by some to amend things.
4. Agreeing things: Since one partner has an upper hand and the only way for David to force this is legal proceedings, agreeing upon things poses a huge risk. What might be important for one, might seem trivial for the other. Time is of no essence here. Restructuring moves like a snail in oil.
Being a part re-negotiations and on both the sides, I feel that patience is the key virtue here. One needs to show resilience and fortitude of the highest order in order to make the deal afloat once again.
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