From the Inside Flap
"The underlying purpose of this book is to empower negotiation for business-to-business dealmaking of business opportunities using analytical tools and planning procedures. The focus on practical tools and procedures that can be justifiably used in a business context distinguishes the book from a vast catalog of other negotiation books."
-From Chapter 1
Business negotiation is often characterized as a "take it or leave it" battle of wits between buyer and seller. But it is much, much more. In reality, business negotiation involves two parties-perhaps business adversaries or perhaps business allies-faced with reaching a reasonable value-enhancing agreement from a range of possible options.
Dealmaking Using Real Options and Monte Carlo Analysis details how you can employ two of today's most powerful decision-making tools-Real Options Analysis (ROA) and Monte Carlo Analysis (MCA)-to effectively prepare for every negotiation by comprehensively and rationally representing myriad possible futures. This uniquely hands-on book outlines a step-by-step process for determining what you want, learning why it is reasonable to hold such a view, and successfully communicating that knowledge to both internal stakeholders and those on the other side of the negotiation.
Richard Razgaitis, an influential thought leader in the field of licensing and valuation, walks you through the tools and approaches of ROA/MCA joint usage, including:
- Real Options Analysis-sometimes referred to as "Black-Scholes" analysis, it is valuable for determining pricing structures, or options, for such outcomes
- Monte Carlo Analysis-an increasingly popular tool for determining the likelihood and significance of a complete range of future outcomes
- Checklists, case studies, web site addresses-for further business and negotiation resources
In the no-quarter world of business negotiation, a patient and methodical inquiry into all relevant matters is not practical. At the same time, rapid analysis may not provide the data required to satisfy all parties. What is needed is a model that takes into account the speed and urgency required to effectively prepare for a negotiation while allowing rational and defensible analysis of the numerous real options.
Dealmaking Using Real Options and Monte Carlo Analysis introduces that model. This practical, results-based book unveils a negotiating system that achieves the dual goals of speed and reasonable certainty, and is destined to become the method of choice for reaching outcomes designed to satisfy all parties in the negotiation.
RICHARD RAZGAITIS is a managing director at InteCap, Inc. A recognized leader in the field of licensing and valuation, he has over twenty-five years of experience working with the development, commercialization, and strategic management of technology, seventeen of which have involved the commercialization of intellectual property.
