Dealmaking: The New Strategy of Negotiauctions (Second Edition)

A setup move establishes your terms of entry into a negotiauction situation. A rearranging move reconfigures the assets, the parties, or both, in a way that creates additional value in the deal. And a shut-down move cuts off same-side-of-the-table competition.

Professor Howard Raiffa’s maximum bid of others (or MBOO, pronounced “maboo”) analysis, which captures the fundamental trade-off in graphical form.

Identifying value-creating opportunities requires probing for the underlying interests of each side, rather than playing the traditional game of positional bargaining.

Putting MESOs on the table allows you to diagnose what is important to your counterparty, which is then the raw material for identifying value-creating trades across issues.

in the event that someone else (read: Samsung) bid for AuthenTec, Apple could pay $138 million (= 38 percent of the total acquisition price) to acquire a nonexclusive license to certain fingerprint recognition technologies. So, if Apple acquired AuthenTec, Apple could keep the fingerprint technology out of Samsung’s hands; but if Samsung acquired A

practitioners consider the magic number to be somewhere between five and eight bidders.

ZOPA, which stands for “zone of possible agreement.” Given your assessment of your own BATNA and your own reservation value, and (equally importantly) the other side’s BATNA and reservation value, you can determine, at least as a first pass, whether a ZOPA exists. The ZOPA analysis tells you whether there is value to be created in the negotiation.

important distinction between commodities, which were appropriate for e-auction, and more complicated goods and services, which were not.

The other risk is that your first offer is too conservative, so you unknowingly give away a substantial piece of the ZOPA in your very first move.