Entrepreneurial Negotiation by Samuel Dinnar & Lawrence Susskind

Author:Samuel Dinnar & Lawrence Susskind
Language: eng
Format: epub
ISBN: 9783319925431
Publisher: Springer International Publishing

Implications for Action

What should Dip do differently if he has a chance to do a negotiation like this again? We think he should focus on creating value by paying more attention to relationships (at present, and possibly in the future) and by taking more careful account of the pressures and opportunities created by the complexity of the situation on both sides.

He should pay a lot more attention to the underlying interests of the other parties involved, and try to ask questions that clarify what those interests are. He should plumb the interests of the various members of his own board of directors, and the investors that are behind them. Why are they specifying the specific terms they have asked him to secure from the CM? What room to maneuver are they willing to give him? He and his COO should think very carefully about how they will measure the success of their efforts in the short-term and the long-term. They should also do some homework before they meet with the other side to find out what the prevailing norms in the industry are.

Dip shared the rest of his story with us. We asked what he did after this initial failure, once they were able to downsize and attract new investors:

You know what’s funny? We had to negotiate with the CM anyway. Once the deal fell apart, paying X was just gone. X went to zero. They’re going to get zero. We did what we needed to do, and we bought the time we needed. At the eleventh hour, I found new investors.

When the new investors came in they said, “Look, you guys just relax with the company. We know this is a toxic relationship. We’ll take care of that.” I was very lucky in that one of them is a very good negotiator, and ultimately we ended up getting the inventory back, which was good. It gave us breathing room without having to outlay more money to build it again.

We sell an entire system now, and that’s what Ecovent is. It’s wireless; it’s literally plug-and-play. Basically, put it in and our math unlocks your whole building, in the sense that it looks inside your walls, it looks out your windows, it looks in your doors; it figures out every room, how that room works. Then on your phone, you just set the temperatures the way you want and our vents adjust. We have a company, we’re funded and all that, and we’re operating, it’s great. We’re going to be back at fundraising later in the year. (He laughs) Whoop-de-do, but it should be a good time because we’ve actually got a good story to tell.

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