Be Willing To Walk Away Empty!

In the December 2006 issue of INC. Magazine there was a great article by their columnist, Norm Brodsky. His title tells the story: AFTER SPENDING DECADES BUILDING HIS BUSINESS, OUR COLUMNIST MANAGED TO NEGOTIATE THE OFFER OF A LIFETIME --- BY REFUSING TO NEGOTIATE.

One of his venture capital partners offered to buy his company. He replied that he would give them an "open book" to the company, but he wouldn't negotiate.

A couple of quotes from Brodsky

"I don't care if I sell the business or not. And therein lies a paradox. The less interest you have in doing a deal, the more likely you are to get one you will find difficult to refuse."

(VC Friend) Mitch: "I've been talking to (potential buyer) Greg. He was surprised we haven't heard back from you about his offer.

"Listen, Mitch, here's the deal. I told Greg there would be no negotiations. He's as terrific guy, but I'm not negotiating with him. I don't care if I sell the business or not."

Two days later, Greg called me. "We'll pay you what you want."

I will never get a deal like this again. If you've ever negotiated to buy or sell something, you know that you're much more likely to get a good deal if you are willing to walk away empty-handed.

What his quotes don't tell us is that Brodsky made sure, before they opened their books to the buyer, that this transaction would be incredibly valuable and a perfect fit to the buyer.

Jim Sauerwein