Negotiating Terms in Partnership Agreements

"We have budget for $199,000," the procurement manager spat at me. I had a $325,000 deal forecasted, and we had 7 days left to close it. That was June, 2020. End of quarter. Egg about to be smeared all over my face. I paced around my house while my family swam at the pool. Cursing under my breath. Back then, I knew every negotiation tactic in the book. But that was the problem: My negotiation "strategy" was actually what I now call "random acts of tactics." A question here. A label there. Throw in a 'give to get.' There was no system. No process. Just grasping. Since then, I now follow a step by step process for every negotiation. Here's the first 4: 1. Summarize and Pass the Torch. Key negotiation mistake. Letting your buyer negotiate with nothing but price on their mind. Instead: Start the negotiation with this: “As we get started, I thought I’d spend the first few minutes summarizing the key elements of our partnership so we’re all on the same page. Fair?” Then spend the next 3-4 min summarizing: - the customer's problem - your (unique) solution - the proposal That cements the business value. Reminds your counterpart what's at stake. They might not admit it: But it's now twice as hard for them to be price sensitive. After summarizing, pass the torch: "How do you think we land this plane from here?" Asking questions puts you in control. Now the onus is on them. But you know what they're going to say next. 2. Get ALL Their Asks On the Table Do this before RESPONDING to any "ask" individually. When you 'summarize and pass the torch,' usually they're going to make an ask. "Discount 20% more and we land this plane!" Some asks, you might want to agree to immediately. Don't. Get EVERY one of their asks on the table: You need to see the forest for the trees. “Let’s say we [found a way to resolve that]. In addition to that, what else is still standing in our way of moving forward?” Repeat until their answer is: "Nothing. We'd sign." Then confirm: “So if we found a way to [agree on X, Y, Z], there is nothing else stopping us from moving forward together?" 3. Stack Rank They probably just threw 3-4 asks at you. Now say: "How would you stack rank these from most important to least important?” Force them to prioritize. Now for the killer: 4. Uncover the Underlying Need(s) Ignore what they're asking for. Uncover WHY they're asking for it. If you don't, you can't NEGOTIATE. You can only BARTER. You might be able to address the UNDERLYING need in a different, better way than what they're asking for. After summarizing all of their 'requests,' say this: “What’s going on in your world that’s driving you to need that?” Do that for each one. Problem-solve from there. P.S. These 7 sales skills will help you add an extra $53K to your income in the next 6 months (or less) without working more hours, more stress, or outdated “high-pressure” tactics. Go here: https://lnkd.in/ggYuTdtf

❌ "We don't accept redlines to our terms." ❌ Well, as an in-house attorney, I don't always accept that position. Sure, there are some instances in which I agree that negotiating the terms isn't necessary. For example, if the deal is low risk to us, if the terms offered are well drafted and reasonable, or if my business client needs it signed asap and accepts the risks. But what about all those other times where I don't think it's in my client's best interest to sign the terms as-is? How do I get past this initial NO? My Secret 🤔➡️ With a thoughtful negotiation strategy that requires minimal effort from my counterparty and focuses on impactful yet reasonable asks. Aka I make it really hard for them to keep saying No to me. Here are three things I do - and recently did again - to get past NO during a tough contract negotiation. ✅ Run a gap analysis of the terms and identify my client's three top issues -- Aka I am reasonable because I'm only asking for three changes. ✅ Outline them in an email and explain WHY I am requesting these changes -- Aka I am respectful because I didn't send them my redlines after they told me they don't accept redlines. ✅ Schedule a call to discuss only those three issues and screen share a redlined draft showing my proposed markups -- Aka since we're on the phone already and I did all of the work, how can you say No to me again? I implemented this strategy last week and the counterparty agreed to all three changes. 🤐 This isn't the first time this approach has worked. My Client's Response: "Wow! I can't believe you got them to change their mind! I guess No doesn't always mean No." That's right. No doesn't always mean No. Especially when you use smart redlining and negotiation skills to navigate the situation. ❓Tell me, what are your best methods to get a counterparty to agree to your redlines after they've already said No? #gettingtoyes #negotiationskills #negotiationtips #contractnegotiations #fromnotoyes #corporatecounsel

When exploring new partnerships, it’s easy to get caught up in the excitement of potential opportunities. But what often gets overlooked is the alignment between the company’s existing priorities and the resources needed to support those partnerships. I was chatting with a partner leader whose deal fell apart because they jumped straight into the partnership without fully understanding the company’s internal challenges. They didn’t ask the critical questions: What problems do we need to solve that a partner could help with? What are our current commitments? What resources are already tied up? They made the mistake of assuming the strategy was already adopted across the company. But without internal buy-in and alignment with company goals, even the most promising partnerships are doomed to fail. Before diving into a partnership, ensure there’s alignment with your organization’s priorities and a clear understanding of the internal landscape. You've got to know your own business first, then find the right partners

In business and life, the best outcomes go to the best negotiators. Most people think negotiation is about winning. It's actually about understanding. What separates good deals from great ones? It's not aggression. It's not manipulation. It's not who talks loudest. It comes down to mastering the human side of the exchange. Here's the path that works: 1. Prepare Like You Mean It Research goes beyond Google. Understand their pressures, their goals, their challenges. Knowledge becomes helpful when used with care. 2. Open With Real Connection Forget the power plays. Start with curiosity and respect. The tone you set in the first 5 minutes shapes everything that follows. 3. Explore What's Underneath People fight for positions. But they negotiate for reasons. "I need a better price" might really mean "My boss needs to see I'm adding value." Find the why behind the what. 4. Trade Value, Create Value The best deals aren't zero-sum. Look for ways both sides can win. Sometimes what costs you little means everything to them. 5. Close With Total Clarity Handshakes aren't contracts. Document what you agreed to. Confirm next steps before you leave. Ambiguity kills more deals than disagreement. The biggest mistake I see leaders make? They negotiate like it's combat. But the best outcomes come from collaboration. When you're across the table, remember: 👂 Listen more than you speak ❓ Ask "Help me understand..." when stuck ⏸️ Take breaks when emotions rise 👟 Know your walk-away point before you sit down Your style matters too. Sometimes you need to compete. Sometimes you need to accommodate. The magic is knowing when to shift. Success isn’t given. It’s negotiated. But how you negotiate determines whether you build bridges or burn them. Choose wisely. 📌 Save this for your next negotiation. ♻️ Repost if this helps you (or someone on your team) negotiate. 👉 Follow Desiree Gruber for more tools on storytelling, leadership, and brand building.

This may surprise C-suite execs, but your partners don’t work for you. Yesterday I spoke with the CEO of an early-stage SaaS startup. He was confused why, after inking a bunch of partner agreements with “excited” new partners, all of their new “partnerships” fizzled. So I asked him one simple question: “Did you set and align on goals and expectations with these partners?” As soon as he heard the question a lightbulb went off. The answer was NO and he immediately understood why this was a mistake. I hear this all the time... Teams are so focused on getting partners “over the line” they skip critical alignment. Here are a few important things to discuss with a new partner: - What level of partnership the partner would like to achieve - Each partner’s expectations and goals for the partnership - What resources each side can commit to the partnership - How quickly this partnership could be rolled out widely - How you can make the partner more successful - What the partner can expect from your team - How many customers this could be a fit for - What successful partnership looks like - How your product or service works - How your partner program works - What you expect from their team This simple list will make all the difference in how a partnership tracks. Do it as EARLY as possible. If the partner isn’t interested (or willing) to discuss these topics they aren’t bought in. Things end how they begin. So begin your partnerships right.

Your negotiation metrics are outdated and costing you dearly. Forget spreadsheets; success goes beyond numbers. Here you’ll have seven powerful metrics, recommended by 𝗛𝗮𝗿𝘃𝗮𝗿𝗱’𝘀 𝗣𝗿𝗼𝗴𝗿𝗮𝗺 𝗼𝗻 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 (𝗣𝗢𝗡), to redefine success in your negotiations. This will boost your profits, partnerships, and strategic impact. After advising executives from global companies like ABB and transforming negotiation strategies for over 30 years, I’ve seen how outdated metrics silently erode value. Most companies measure negotiation outcomes with overly simplistic financial indicators: • Higher rates • Bigger contracts • Short-term gains But here’s the costly truth:  ↳ This narrow focus risks long-term profitability, reputational damage, and missed strategic opportunities. Harvard’s Program on Negotiation (PON) recommends evaluating negotiations with these seven powerful metrics: 1️⃣ Relationship (separate people from the problem): ↳ Does your negotiation build relationships by clearly separating interpersonal issues from substantive problems? 2️⃣ Communication (Listen actively and empathize): ↳ Are discussions focused on understanding the other side’s perspective, actively listening, and demonstrating empathy to solve issues constructively? 3️⃣ Interests (Identify shared and divergent interests): ↳ Does the negotiated outcome effectively address your core interests, your counterpart’s key interests, and relevant stakeholders’ interests? 4️⃣ Options (Create value through joint gains): ↳ Have you jointly brainstormed multiple creative solutions aimed at maximizing mutual gains and expanding the negotiation pie? 5️⃣ Legitimacy (Use objective criteria): ↳ Is the agreed solution backed by objective criteria, standards, or precedents, ensuring fairness and acceptability for all parties involved? 6️⃣ BATNA (Best Alternative to Negotiated Agreement): ↳ Is your negotiated agreement demonstrably superior to your best alternative if the negotiation fails? 7️⃣ Commitment (Clear and realistic implementation): ↳ Are the negotiated commitments detailed, clear, realistic, and actionable, ensuring both parties understand their roles and responsibilities? Companies embracing these comprehensive metrics don’t just close deals; they build enduring competitive advantages. Redefine your negotiation success metrics now. Use these seven dimensions to evaluate your next negotiation. Your future bottom line will thank you. What’s your favorite metric for measuring negotiation success? Share in the comments. ♻️ Found value here? Please repost. Let’s raise negotiation standards together. 

Remember the childhood game of telephone? One person whispers a phrase, it passes through a chain, and by the end, it’s completely distorted. Funny as a kid. Disastrous in business. Recently on Friends with Benefits, we talked with Franz-Josef Schrepf about how this same dynamic plays out in partnerships. You have one vision, your partner has another, and by the time that vision moves through sales, marketing, and leadership, it’s often unrecognizable. This is how deals stall. How expectations misalign. How “strategic” partnerships turn into transactional ones. So, how do we avoid a game ofCall me maybe?"Over-communication and executive alignment. It’s not just about making sure your teams are on the same page, which can be a challenge in and of itself. It's also about making sure each stakeholder understands the partnership in a way that ties to their goals. 📈Executives care about revenue and growth. Frame the partnership in terms of impact on pipeline, market share, and competitive advantage. 🤝🏼 Sales teams care about ease and speed. Make sure they understand how the partnership helps them close more deals, faster. 👀Marketing cares about positioning and demand. Ensure they see how the partnership expands reach, adds credibility, or unlocks a new audience. Before you can communicate effectively, you have to deeply understand what each person values, the goals they're trying to reach and how they define success. Otherwise, you’re just playing a giant game of telephone where no one walks away with the right message. Great partnerships aren’t built on handshakes and hype. They’re built on clarity, consistency, and alignment at every level. If your partnerships aren’t driving results, ask yourself: • Do I fully understand what my partner (and their leadership) actually cares about? • Am I communicating their value in a way that makes sense to them?

Choosing the right investors can make or break your company. When you’re fundraising, it’s tempting to take the first signable offer you get. In a tough funding environment, just getting any deal can feel like a miracle. But choosing the right investor is about much more than just the capital. Here’s how to evaluate investors beyond the dollar amount and find the right fit for your company. 𝟭. 𝗗𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗲 𝗬𝗼𝘂𝗿 𝗜𝗱𝗲𝗮𝗹 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀 It’s crucial to know what kind of investors you’re looking for before you start seriously negotiating. Not all investors are equal, and not all will add value beyond just cash. Questions to consider: - Do you want an investor who has operational experience as an entrepreneur? - Would it help to have an investor who’s an expert in a specific industry or region? - Are you looking for someone with a deep network of other investors, potential customers, or prospective employees? - Would you prefer a partner who actively mentors the founding team, or someone more hands-off? Also consider the firm’s brand and operating resources. Some firms have entire teams dedicated to helping portfolio companies with hiring, strategy, or product development. The firm’s reputation alone can also be a powerful signal to future investors and potential partners. 𝟮. 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗲 𝗘𝗮𝗰𝗵 𝗣𝗮𝗿𝘁𝗻𝗲𝗿 𝗜𝗻𝗱𝗶𝘃𝗶𝗱𝘂𝗮𝗹𝗹𝘆 The first thing to realize is that not all money is equal. The most valuable investors bring much more than capital: they bring expertise, connections, strategic support, mentorship, and more. Questions to consider: - What value does this investor bring beyond capital? - Have they invested in similar companies before? - Do they have a strong network in your industry? - Are they known for helping with hiring, strategy, or partnerships? - If they were not investing in the company, would you want to work with them? Do Your Own Reference Checks It’s entirely reasonable, and recommended, to ask a VC for references. Reach out to founders from their previous investments, especially those that didn’t succeed. Understanding how they handle failed investments can tell you a lot about their character and support style. 𝟯. 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗲 𝗘𝗮𝗰𝗵 𝗙𝗶𝗿𝗺 𝗮𝘀 𝗮 𝗪𝗵𝗼𝗹𝗲 An investment partner is part of a larger firm, and the firm’s brand and resources also matter. Sometimes, the operating team or the firm’s network can provide more value than the partner themselves. Questions to consider: - Who else at the firm will be involved with your company? - Does the firm’s brand and reputation align with your company vision and stage? - How will this firm’s involvement signal your momentum to future investors or partners? Be cautious if the firm’s values or focus areas don’t align with your own. Taking money from a high-profile firm might look good on paper, but it can backfire if they expect you to shift strategy to fit their portfolio. Read the whole post here: https://lnkd.in/ewzbkpUd

I think most real estate investors overlook the power of setting clear expectations in partnerships. Here are a few reasons why I think setting expectations is crucial: 1. Alignment of Goals: Before embarking on any real estate venture, it's essential to discuss and align on the goals and objectives of the partnership. Whether you're seeking long-term cash flow, value appreciation, or a combination of both, clarifying these goals from the outset ensures that everyone is on the same page and working towards a common vision. 2. Managing Risk: Real estate investments come with inherent risks. By openly discussing and setting expectations around risk tolerance, risk mitigation strategies, and exit plans, partners can proactively manage potential challenges and make informed decisions when unforeseen circumstances arise. This transparency fosters a sense of security and allows for more effective problem-solving. 3. Roles and Responsibilities: Clearly defining each partner's roles and responsibilities within the partnership is essential for smooth operations. This includes tasks related to property management, financing, legal matters, marketing, and more. By establishing clear expectations, everyone knows their area of expertise and can focus on their strengths, maximizing efficiency and productivity. 4. Communication and Decision-making: Open and effective communication is the lifeblood of any successful partnership. By setting expectations around communication frequency, preferred channels, and decision-making processes, partners can avoid misunderstandings, promote transparency, and ensure timely and informed decisions. Consistent and proactive communication builds trust and fosters a collaborative environment. 5. Exit Strategies: It's crucial to discuss exit strategies right from the beginning. Partners should align on the timeline for potential exits, whether through selling the property, refinancing, or other means. Having clear expectations regarding the exit strategy helps manage expectations for returns on investment and enables partners to plan accordingly. Partnerships are like marriages; It’s easy to get into, hard to get out of. Clear expectations are key. #CommercialRealEstate #RealEstateInvesting #Entrepreneurship #Cashflow

I mentioned my agency evaluation process on the Exit Five podcast and got a bunch of requests for the template. It contains: 1. The RFP Document Template Here, you'll outline: — Your company background — Your RFP purpose and goals — Why you are looking for help — Your exact partner requirements — What you're expecting to see in a proposal — Your budget (yes, share this and weed out partners) — Your timeline for selection so everyone can plan 2. The RFP Tracker and Scorecard — List of candidates you're evaluating — Track the process as outlined in RFP — Score each partner based on recommendations — Score each partner based on requirements met It's not perfect BUT: — It helps you make a semi-data-driven decision — The business case self-builds for the RIGHT partner — It is documented for the business and management — It holds everyone accountable during the partnership Link in the comments. No gate, I don't need your information. Just let me know if you liked it and it helps! Go forth and be successful.