Paul Papayoanou

Addressing Value Drain in Dealmaking: How Game Theory Can Help

Dealmaking functions can greatly enhance a company’s competitiveness and value, but all too often they leave significant value on the table or behave in ways that destroy value. For dealmakers to quickly close deals that add substantial value, they must use methods that help them to properly prepare and negotiate. Five fundamental concepts rooted in game theory and practical experience can help them to prepare, allowing them to capture significantly more value. Two of these, tough but fair and go slow to go fast, concern the mindset that will help dealmakers to realize value and enhance their reputation. The other three comprise a systematic, practical approach to developing robust negotiation strategy and the tactics necessary to put it into effect. With the right incentives and training, leaders can equip their dealmakers with the mindset, approach, and capabilities to secure high value agreements.