Many business negotiations are also complex with elements of constituency dynamics and ‘balancing’ on the part of the negotiation team. They can take many forms ranging from relatively simple product sales through procurement contracts to a complex sale of an entire business operation. Except in the most straightforward of cases, the negotiators – whether company sales representatives, procurement managers or corporate lawyers – are acting on behalf of the company. They will be working to a set of expectations and priorities much the same as union negotiators work to a set of expectations and priorities set for them by their members.

As with workplace negotiations, business negotiations are different but not so very different that the basic elements of good negotiation no longer apply. The parties always use the four issue strategy and the option of walking away. The tasks of information exchange, flexibility testing and concession making are still all necessary to reach a good agreement.

This appendix reviews some important practical aspects to consider when preparing for and conducting major formal business negotiations, though the points raised apply in less formal business negotiation settings as well. It presumes an understanding of the negotiation strategy and process issues discussed in earlier chapters.

Deal prospecting: when does a negotiation start?

A small geology company had researched a major mining house, making an assessment of its internal capabilities and also of the broader geology of areas where the mining company was already operating.