How to Evaluate Partnership Proposals

Your negotiation metrics are outdated and costing you dearly.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executives from global companies like ABB and transforming negotiation strategies for over 30 years, I’ve seen how outdated metrics silently erode value.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. 

Often clients or prospects come to ask if they should join as a partner or just remain an employee. Here is a recent case I had with a doctor. As a doctor, receiving an offer to become a partner in a medical practice can seem like an exciting and lucrative opportunity. However, it's crucial to thoroughly review and understand the terms of the partnership agreement before signing on the dotted line Here are some critical factors to consider: 1. Compensation Structure: Carefully examine how compensation is determined and distributed among partners. Ensure that the compensation model is fair, transparent, and aligns with your expectations. Consider factors such as productivity-based compensation, revenue sharing, and profit distribution. 2. Ownership and Voting Rights: Understand your ownership stake in the practice and the voting rights associated with it. Determine if you will have an equal voice in major decisions, such as hiring, firing, expansion plans, and strategic direction. 3. Buy-In and Buy-Out Terms: Evaluate the terms and conditions for buying into the partnership and, if necessary, selling your stake in the future. Pay close attention to the valuation methods, payment schedules, and any restrictions or penalties. 4. Non-Compete Clauses: Carefully review any non-compete clauses that may limit your ability to practice in certain geographic areas or within specific specialties after leaving the partnership. 5. Roles and Responsibilities: Clearly define your roles, responsibilities, and expectations within the partnership. Understand your workload, patient care responsibilities, administrative duties, and any on-call requirements. 6. Financial Transparency: Ensure that the partnership agreement includes provisions for regular financial reporting and transparency. You should have access to detailed financial statements, budgets, and records to assess the practice's financial health and make informed decisions. 7. Exit Strategy: Understand the terms and conditions for withdrawing from the partnership, including the process for valuing your stake, potential penalties, and any restrictive covenants that may apply. 8. Professional Liability and Insurance: Determine how professional liability insurance and malpractice coverage will be handled within the partnership, including the allocation of costs and coverage limits. 9. Growth and Expansion Plans: Evaluate the partnership's growth and expansion plans, including plans for new locations, acquiring new practices, or expanding into new service areas. Ensure that these plans align with your professional goals and aspirations. 10. Legal and Tax Implications: Consult with legal and tax professionals to understand the implications of the partnership agreement, including tax considerations, liability exposure, and any regulatory or compliance issues. if you want to schmooze more let me know are you thinking about entering into a partnership? #cpa

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 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.