By Akinyemi Ayinoluwa
I negotiated and brokered a ‘win-win’ deal last week, and I am inspired to share this with my readers, my thoughts on Negotiation, as an integral part of deal making.
I consider Negotiation a prelude to Deal Making; it is synonymous with deliberation, concession, conciliation, compromise, cooperation.
You will agree that we indulge daily in ‘gives’ and ‘takes’, we flex our bargaining skills in our local markets, in relationships, at offices, in schools, everywhere you can think of. To agree we must make offers and counteroffers.
Negotiation is a process where parties interested in cementing a contractual relationship identify terms of interest and exchange propositions.
They make promises by way of offers, in the hope that the other party accepts them. This exercise can be in writing or verbally. Negotiations can also help in resolving disputes between parties.
This article focuses on Negotiation as a process before the execution of contract documents. I believe the current spate of Talent and Record Label disputes, provides enough backdrop to beaming light on the importance of this process in our entertainment landscape in Nigeria.
In Nigeria’s entertainment landscape, legal advice is ruthlessly scorned. Very rarely do investors develop a legal framework that clearly protects their rights in investments made.
They wantonly glide on thin ice. Two years ago, I was privy to one of such instances where a certain creative entrepreneur spent a whooping N34m (Thirty Four Million Naira) before he realized he had no Recording Contract to spell out the much needed terms that will govern the relationship with Talents under his label.
One of his Talents finally attained prominence and it was too late to have him accept proposed terms. Altogether, someone forgot to do the right thing.
In 2015, there will be tonnes of transactions to be conducted in entertainment. It isn’t too late to have practitioner brace up for some action in February.
Record deals will be brokered, new endorsement deals executed, new ambassadors appointed, new partnerships will be forged, new film scripts will be adapted, employment offered etc.
In the run-up to these transactions, I hold the firm view that parties should avert their mind to the indispensability of Negotiation. The best strategy in Negotiations is the ‘win-win’, here; all interests are served in a fair, just and equitable manner.
This guarantees no one is disgruntled at the end of the day. You ever brokered a deal and left feeling short-changed? I bet you have. Every day we indulge in the practice of an exchange of offers and settling on a price we are willing to pay for value.
A lose-win scenario leaves people unsatisfied, similar to being bullied and having your nose bloodied. The ideal type of negotiation leaves room for compromise; your propositions should not be predatory.
More importantly, deal so that you can stay in business with your goodwill intact. It is in tune towards symbiotic prosperity. The win-win is best. Good for referrals and renewals. It should be the ultimate goal.
At the Negotiation Table, the first remark should be this: ‘Make me an offer’, that’s a good place to start. Usually, one of the parties has the advantage. Notwithstanding, the offers made by both parties would determine the acceptance.
Parties to a Negotiation must identify and focus on the exact purpose for brokering the deal? What is the ultimate goal? What compromises can be made? While Negotiations can be gruelling and exhausting, the value sought to be exchanged should constantly be on the front burner. I have negotiated a record contract for as long as 6 months.
At a point I had doubts as to the commitments of both parties, there were countless phone calls, meetings and e-mails, and it seemed as though we would never arrive at an agreement. The only fuel that kept me interested in the brief was the ultimate goal of the parties.
There are instances where the privileged ‘big guy’ on the block is so hyped up with the idea of floating an entertainment company.
He is seduced by the fame that comes with the bright lights of showbiz and the media; as such he pumps in money into Talent he considers as his bridge to that arena. Apparently, the big guy with money isn’t ready to do business properly.
The Talent who is the recipient of these production fees and promotional expenses is lucky to be in bed with the ‘maga’. Surely, he is likely to win some advantage off the foolery perpetuated and unguarded business decisions made by the ‘big guy’.
A wise investor in entertainment or the record business acknowledges the place of Negotiations. There, he sits with the Talent, to discuss, exchanges terms, and make concessions.
No Talent should be too scared or shy to negotiate. In a relaxed atmosphere, with no duress or distractions parties must exchange promises.
In simple language we say what we mean, and mean what we say. That is important when parties negotiate. Each must listen, think and speak. Another point to note is that parties must not be in a hurry to arrive at a finite decision.
Sometimes I ponder, is Negotiating such a big deal? Will a party be bold enough to negotiate effectively if he sat next to a famed individual like Denzel, or Kanye West? Will he retain composure and think straight or will you he be overwhelmed by the big guy’s clout and stature?
Will the neophyte and his lawyer be star-struck? Imagine me negotiating a deal with Richard Mofe Damijo, my childhood hero, on the other side.
Wow, I hope I don’t bungle the process by laughing sheepishly and asking for an autograph and selfie. How do we negotiate deals with super rich companies in the telecommunications sector or the big beverage companies?
To any practitioner negotiating, I dare say, the goal is to get the best deal possible. They need the value you provide, and are willing to have you make your own propositions.
Negotiations are easier when you have attorneys representing your interests. By training, they can effectively communicate your offers, and analyse the benefits that could accrue to you.
In addition, they have the much needed expertise and experience to understand the likely issues that will be talking-points in the prospective transactions.
They document the terms agreed to and preside over reviews and the execution. Negotiating, renegotiating and documenting terms are their duty to you as a client.
Do the right thing today. Know your worth too. You won’t get what you don’t ask for.
