Styles of negotiation

Styles of negotiation

There are various styles of negotiating a deal. The style of negotiation depends upon the interests of the target firm. The various styles of negotiation are as follows

• Accommodating: In this style of negotiation, the acquirer is keen on solving the problems of the target firm. The acquirer is sensitive to the signals given by the target firm. But in such cases, the acquirer may feel being taken advantage of especially if the target does not place much emphasis on the business relation.
• Avoiding: In this kind of negotiation, the acquirer does not like any kind of negotiation unless he is warranted. Even if the negotiation process takes place, the acquirer tries to avoid the confrontational aspects of the negotiation process.
• Collaborating: This style of negotiation is adopted by the acquirers who love to negotiate and solve problems. In such cases, the acquirers are good at using the negotiation process to understand the problems and concerns of the target firm. But in such cases, sometimes simple problems could be converted into complex ones due to the keenness of problem solving.
• Competing: This style is adopted by the firms who enjoy winning and look at negotiations as an opportunity to win. Here, the acquirers are strategic and have a strong instinct about all the aspects of negotiation. But in this style of negotiation, relationships between firms are neglected for the dominance in bargaining.
• Compromising: This style of negotiation is adopted by the acquirers who are keen on closing the deal quickly by doing what is fair and equal for both the firms involved in the negotiation process. But in this case, the negotiation process is rushed and unnecessary compensations are made.

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