Like most people, I am asked about what I do for a living when I meet people. Easy questions like this are good conversation starters. When I tell people I work in M&A, I am usually greeted with wide eyes and at least five follow-up questions. How did you get into that? Why would a company buy another company? How does the process work? Almost all these reactions are in the realm of "wow, that is cool" — which, in my mind, is better than "wow, that is weird," but I am not exactly the most adventurous of the bunch, just ask my fiancée.
So how do you get into the field of M&A? For me it was a lucky break while running a procurement department. Our CFO at the time saw in me one of the main skills needed to succeed at M&A: negotiation. Negotiation skills are one of the most valuable tools we need in every facet of our lives. They help when trying to close an M&A transaction, but they also help you buy a car, move into a better job, and get your kids to bed after a long day. To be good at all types of negotiations, there are two principles to understand and master: empathy and counter positions. There's a great book by William Ury, Getting Past No: Negotiating in Difficult Situations, that dives into these principles. I was turned on to it by a former manager when I started in his procurement department — nothing like starting a new job and on day one being told to go read a book. But he was right, and I've shared this book with anyone looking to improve their skills in this area.
Empathy
Seems counterintuitive to have empathy when negotiating, doesn't it? Alpha personalities are generally cutthroat negotiators. They don't have much empathy because they believe that in negotiations one side must win and one side must lose — every inch they give away is an inch they can never get back. Conversely, introverts don't like negotiating because they have trouble making their own positions known; they believe negotiation equals conflict, so they give away everything to get it over with, or avoid it completely. The best negotiators generally have great empathy for their counterparty. Negotiations aren't successful unless both parties get something they want. Recognizing that whoever you're negotiating with wants something you can provide is a powerful tool. Acknowledging to the other party that you have empathy disarms them and helps you reach an agreement faster. The easiest way to show empathy is to ask questions instead of stating positions. Asking questions makes the other party feel in control of the negotiation and that they're being heard — while you gather the information you need to shape options for getting to an agreement. Instead of stating that you need your product delivered in three days, try asking how quickly they've delivered that product to their best customers. Use the power of asking questions and listening to improve your empathy.
Counter positions
How do you get where you're going without knowing what direction you must travel? Studying your opponent and what they're looking to achieve is the most critical aspect of negotiating a good outcome. When I'm standing in the fairway trying to hit a ball onto the green, I make sure I know the wind strength and direction, the distance to the hole, and the other factors working against me. Those are all counter positions trying to keep me from getting the ball as close to the hole as possible. So what do I do? I don't ignore the wind or fight it — I negotiate with it. If it's blowing right to left, I hit my ball further right and let the wind carry it back toward the hole. I use it to my advantage. Over 50% of the time spent preparing for a negotiation should go into putting yourself in the other party's shoes and testing out their positions. Understanding what your opponent needs and what they can live with, then matching those against what your side needs and can live with, develops a range of possible outcomes. Only outcomes that land within those ranges result in a successful negotiation. Not preparing for them (ignoring them) or negotiating outside of them (fighting them) is the same mistake as not accounting for the wind on a golf course.
There are certainly other skills needed to succeed in M&A, and it's a broad field with many job opportunities. There are dealmakers who negotiate transactions, financial analysts who model valuations and diligence companies, and integration managers who bring together a buying and selling organization. Each of these roles has specific traits needed to succeed, from financial acumen to project management. One of the most interesting parts of being involved in M&A is that there are no specific "M&A skills" you learn in school — nobody goes to college for M&A, and you don't need a specific degree like a lawyer or a doctor does. Every colleague I've worked with came into M&A from some other function. Leaders saw in these people a broad skillset of great project management and communication, and a desire to succeed at something new. And every one of them needed to know how to thrive in negotiations. Financial analysts negotiate with sellers for information on their business. Integration managers negotiate with functional teams for time and resources. Having empathy for others and understanding their positions in a negotiation are the keys to bringing them to your side and resolving conflict. If a negotiation isn't successful, both parties should still understand why and retain mutual trust — that leaves the door open for future discussions.
So if you're looking for a career in M&A, I can't tell you exactly how to get into the field. Working hard, being a great team member, staying open to new opportunities, and being in the right place at the right time is all I know about getting the chance. But with or without a career in M&A, being a great negotiator will help you succeed in business and in life. And any skill we can translate between business and life is a win-win for growth as an individual.