Français | Contact Us | Help | Search | Canada Site | ||||||
Home | Site Map | What's New | About Us | Registration |
8.1 Negotiate the Deal - IntroductionWhen an investor likes your investment proposal and the follow-up meetings have been fruitful, you may receive a "term sheet" that outlines an offer from the investor. Keep in mind that this offer is the investor's opening position — now you've got to negotiate an agreement that both parties can live with. In some cases, negotiations are painstaking, lengthy and stressful for both parties. But some advanced thinking and effective planning can help negotiations proceed more smoothly.
In This StepYou'll learn how to do some important advance preparation before negotiations take place. You will also consider how to handle a negotiation session most effectively so as to achieve a win-win outcome and avoid some common negotiation pitfalls. Step 7 will also help you decide when and how to disclose your price and point out the key elements of the term sheet and the shareholder agreement. The key concepts are explored in the pages that follow.
If you need a deeper understanding of the material, be sure to follow the links within each section. The New Tech StoryFollow the fictional company New Tech Distributors Corp. (New Tech) as it pursues venture financing. This case example gives you a feeling for the "real" data and strategic decisions you'll be facing. You can always get to it through the link on the left menu bar. |
Updated: 2005/07/12 |
top of page |
Important Notices Privacy Statement |