E261: Want to Know How to Dominate Negotiations? Master Negotiation Secrets: Unlock Deals Like a Pro - Watch Here

About the Guest(s):

Derrick Chevalier is a seasoned negotiation expert and consultant with decades of experience in the field. He is the creator of the CNSUF method, which stands for Comprehensive Negotiating Strategies Universal Framework, an advanced and universally applicable negotiation framework. Derrick has an extensive background with the Karis organization, contributing significantly to negotiation theory and practice worldwide. He has also authored several books on negotiation, including Beyond Negotiating From Fear to Fearless, Beyond Negotiating Influence Rapport Results, and Evolve or Be Slaughtered: Negotiation for the 21st Century.

Episode Summary:

In this episode of the How2Exit podcast, host Ronald Skelton sits down with Derrick Chevalier, a distinguished negotiation expert, to explore the intricacies of negotiation strategies. Derrick delves into the CNSUF method, highlighting its significance as a comprehensive framework that advances negotiation theory. Ronald and Derrick explore the applicability of CNSUF across various levels of mergers and acquisitions, from small businesses to multimillion-dollar transactions, emphasizing the vital role of personal rapport and tactical empathy.

Derrick brings a fresh perspective by comparing CNSUF's adaptability and personalized approach, which allows for a deeper understanding of the dynamics and players involved in negotiations. Derrick's insights provide listeners with practical takeaways on building rapport, understanding cultural and institutional influences, and effectively navigating negotiations where emotions and logic intertwine.

Key Takeaways:

• CNSUF (Comprehensive Negotiating Strategies Universal Framework) offers a universally applicable framework that adapts to different negotiation contexts and is rooted in historical and contemporary negotiation principles.
• Building a rapport and understanding the psychological and socio-economic background of negotiating parties is crucial, especially in small and mid-tier business transactions.
• Popular negotiation frameworks like "Never Split the Difference" have limitations, particularly in less transactional and more complex negotiations.
• Active listening and effective communication are vital tools in achieving negotiation success and resolving potential conflicts efficiently.
• Understanding the roles of knowledge, power, and influence in any organization or negotiation context can significantly enhance the outcome of a negotiation process.

Notable Quotes:

• "Ultimately, how do they determine whether or not it was Win-Win? It's almost exclusively based on a comparison of a goal they set independently and the outcome that they came up with in the negotiation." - Derrick Chevalier
• "Influence is not persuasion. Influence is the ability to plant those seeds within the relationship, the dynamics of the relationship all the way through." - Derrick Chevalier
• "My position is that both of those are very bad strategies. Let me explain why…" - Derrick Chevalier on "Never Split the Difference"
• "In a hostage negotiation, we're using tactical empathy as a tool. We aren't really interested in understanding the background of that person except to terminate the negotiation." - Derrick Chevalier

Article:

Mastering Negotiation: Unlocking the Secrets of Business Acquisition

Key Takeaways

• The CNSUF (Comprehensive Negotiating Strategies Universal Framework) model emphasizes a personalized approach to negotiation with a focus on understanding individuals' backgrounds and contexts.
• Effective negotiation requires balancing empathy and strategy, particularly in complex, multi-party business transactions.
• Building deep rapport and influence is crucial for successful negotiation, especially in mergers and acquisitions (M&A), where personal relationships significantly impact deal closure.

In the dynamic world of business acquisitions, negotiation is an indispensable skill. Ronald Skelton's engaging conversation with Derek Chevalier on the How to Exit podcast reveals profound insights into mastering negotiations, particularly in mergers and acquisitions. Chevalier brings to light the CNSUF model—a universal framework derived from decades of study and practice aimed at transforming negotiation strategies across various scenarios. This article explores critical themes from their discussion, encompassing the evolution of negotiation strategies, the role of empathy and rapport, and the importance of understanding influence dynamics.

The Evolution of Negotiation Strategies in Business Acquisitions

The conversation with Chevalier starts with an introduction to the CNSUF model, which stands for Comprehensive Negotiating Strategies Universal Framework. According to Chevalier, CNSUF is "the only universally applicable negotiation framework," which marks a significant leap in negotiation theory over the past six decades. One key aspect introduced in the discussion is how this model adapts to fit various negotiation contexts, ensuring it is equally applicable across simple one-on-one deals to complex, multi-layered corporate negotiations.

Chevalier shares his experience developed over fifteen years with the Karis organization, highlighting that many traditional negotiation teachings don't fully account for variables in modern business settings. He contrasts this with the CNSUF model that leverages lessons "all the way back from Sun Tzu till today," yet is customized for contemporary negotiations that involve rapidly evolving components such as technology and global market influences.

As Ronald Skelton points out, the current business landscape is stratified—ranging from multi-billion dollar deals involving huge organizations to small business sales grounded in personal relationships. Chevalier confirms that different strategies should be employed depending on the level and nature of the acquisition, each aligning to help navigate its unique set of challenges and stakeholders.

Empathy & Rapport: The Hidden Pillars of Negotiation

Empathy and rapport emerge as central themes during the conversation, emphasizing the psychological intricacies of negotiations. "Everything in life's negotiations," says Skelton, touching upon the daily nuances we encounter personally and professionally. Chevalier elaborates on this idea by discussing how effective communication and tactical empathy are woven into CNSUF's fabric, allowing negotiators to connect profoundly with stakeholders, especially in the emotionally charged lower tier acquisitions.

Chevalier states, “The more specific we can be, then we can choose a set of tools that are consistent with the genuine outcome we're looking for.” Repeatedly, the podcast echoes how tactical empathy—understanding and aligning with counterparts' emotions—can shift negotiations favorably. This extends beyond just feeling for the seller; it’s about genuinely positioning oneself as a trustworthy hand that will transition the business while maintaining the legacy the seller cherishes.

For complex negotiations—where multiple stakeholders and intricate financial considerations come into play—building rapport is more than just a tactic; it’s an art. Skelton points to his experiences, reflecting that in many high-stakes deals, the negotiation's success depends on personal connections as much as financial valuations and due diligence.

Influence Dynamics: Navigating Power, Knowledge, and Influence

The dynamics of power, knowledge, and influence feature prominently in the dialogue as well, aiming to provide a roadmap on how one can effectively navigate and leverage these forces in negotiations. Skelton refers to a model comprising three overlapping circles representing power, influence, and knowledge. Understanding who occupies these areas in the negotiation landscape is vital for moving deals to a successful conclusion.

Chevalier reinforces the importance of identifying these roles early on, especially in M&A scenarios. He emphasizes that regardless of the business size, knowing "who the key players are in any situation" enables one to maneuver adeptly within the negotiation. This insight allows negotiators to target their strategies more precisely, ensuring decisions are made favorably.

Crucially, Chevalier explains that beyond knowing who holds power or influence, one must strive to become a central part of these circles. In an M&A context, gaining influence over decision makers—like company owners or top executives—often requires building deep rapport and demonstrating aligned interests and values.

Throughout this engaging dialogue, Ronald Skelton and Derek Chevalier illuminate critical facets of negotiation, all underpinned by the CNSUF framework's revolutionary, versatile nature. By embedding empathy into strategy and grasping the complex dynamics of influence amidst power and knowledge, negotiators can better navigate the challenging world of business acquisitions. As Chevalier sums up, understanding and implementing these nuanced approaches can be instrumental in securing successful deals and building lasting, impactful relationships in the business arena.

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