Don’t be surprised if parties act in their own best interest during negotiations. That is normal. I would be surprised if they didn’t!
Game Theory is a very useful tool in business negotiations. In this post, I’ll give a broad overview on how Game Theory can help you negotiate your best deal with your business partner.
When the business partnership breaks down, the darker sides of the personalities come through. A dominant partner turns into a bully. A person who does not do well with conflict will withdraw. As the bully gets more aggressive, the pacifist withdraws further. Eventually, the bully gets so angry they are ready to lock the other partner out. The pacifist quits coming in. The next blowout is over money. The course is as logically predictable as what will happen to your car if you hit the highway with no oil in the engine. It will get louder and louder until the engine seizes.
I pay close attention to what is expressed during my private interviews before we start a mediation process. There are 3 signs a partnership will fail.
There is much to consider when setting the value of a business. Talk with a 100 experts and you’ll get 100 different valuations. These methods should help.
A few people have asked for this: Set up a place where you can submit questions about your own partnership problems. I liked the idea so much, I did it!