Strategic alliances. Mergers and acquisitions. Customer and marketing relations

Rules of business negotiations

1.Strategic alliances

The formation of strategic alliances by young and growing companies within the framework of research projects, product design, marketing, etc. is gaining increasingly in importance. A strategic alliance is usually the consequence of:

· financial backing or

· access to well-established distribution channels.

Such an alliance may well succeed over several years for the benefit of all parties. The majority of companies, however, request a business plan be- fore consenting to any long-term business relations or obligations within the framework of a strategic alliance.

2.Mergers and acquisitions

Acquisitions present an alternative for company expansion, while selling a company may be seen as the way out of a solvency crisis.

Companies that are looking for acquisition candidates usually request a detailed business plan that will support their evaluation and selection of the candidates.

Similarly, the acquisition candidate himself will also be interested in the long-term plans of any acquiring company, in order to ensure and protect his own interests for the future. This information is also the subject-matter of a business plan.

3.Customer and marketing relations

Winning a major customer or an agreement with a wholesaler is a particu- larly crucial step towards success for many growth companies.

Most big companies, however, are very reserved and precautious before starting negotiations with rather small and unknown companies. In such cases, a convincing business plan may clear doubts and prove decisive for inspiring confidence, opening negotiations and making further decisions. Hence, business plans effectively help to open doors to potential custom- ers, markets and suppliers.

Answer the following questions

· What kind of financing are you striving for and how much capital do you require?

· Which target groups and people do you want to approach by means of your business plan?

· What expectations, needs and demands do your readers have?

· Which type of business plan will you choose and why?

· Are there any reasons why you would still prefer not to write a business plan?