INTERNATIONAL BUSINESS
NEGOTIATION SUPPORT
Corporate Finance & Advisory, International Trade & Development,
and Investor Relations
Est. 1989
International Business
- All too often companies seek to have international counterparties document a transaction the way they want it documented, without any sensitivities for the cultural and business differences on each side. This more often than not results in disaster, whether in the short, or the medium term. The desire to “do it my way” can be explained by several factors including a lack of experience, urgency, ego, education and ignorance
- Many of the MOUs and agreements signed in recent years will come to nothing. This will be due to issues including not fully understanding what financiers will require, a lack of attention to detail, cutting corners, poor drafting, and otherwise overpromising and not delivering on conditions precedent
- International business negotiations have many characteristics that distinguish them from negotiations in the domestic markets. Obviously, the process to manage relationships becomes more complex when more than one culture is involved
- Deals are drafted between business people from different countries having different cultural and educational backgrounds. National culture programming leads to patterns of thinking, feeling and acting. Successful negotiations require an understanding of each party’s needs and culture, and will require adaptations of the negotiating strategy and its timing, so that it is consistent with the other party’s culture.
The Environment
- In business-to-business relationships, Western firms are increasingly doing business with firms who are based internationally. Culture can seriously interfere with the negotiation behaviour of all the parties
- First impressions are important. Managing expectations throughout the negotiation life cycle is important. The style, structure, wording and intent of MOUs and draft agreements prepared by one party for the other, and the way they are delivered by one party to the other, tell a lot about the “personality” of your potential new partner
- Response times to drafts exchanged with counterparties and their advisors, for requests for online meetings, and for email communications are critical. These elements also tell a lot about the “personality” of your potential new partner
- The style of negotiation is important, especially in business-to-business markets where companies are seeking to build long-term relationships. Establishing, maintaining, building and fostering relationships are of prime importance for the market transaction to take place, and for it to have longevity and value to the enterprises involved.
GC Partners’ Negotiation Support
- GC Partners’ negotiation support has been a critical success factor in client’s securing MOUs and LOIs from international counterparties, as well as the execution of final binding agreements, and the closing of transactions
- GC Partners’ Executive Management has lived and worked in a diverse group of countries such as Great Britain, Japan, mainland China, Indonesia, as well as having worked for English, South African and US investment banks, and for multinationals
- GC Partners has completed transactions that have included companies located in North America, the UK, Japan, South Korea, Singapore, Hong Kong, mainland China, Taiwan, Vietnam, New Zealand and Australia, with experience of negotiations in Laos, Cambodia, Indonesia, Thailand, and India.
