Famous Examples of Walk-Away Negotiations in History
The following are some of the examples on how you can walk away from negotiations:
1. Balian of Ibelin – Surrendered to Saladin after defending Jerusalem in 1490
When the Crusaders of Jerusalem were defeated during the Battle of Hattin, Balian of Ibelin, defender of Jerusalem, knew that Saladin would set his eyes on Jerusalem. So for many days and nights, he defended the city until only a few of them remained.
When Saladin asked for negotiations, Balian knew that it was foolish to keep fighting so he surrendered Jerusalem. What he got was food, water, and the safety of his and his men as they were transported out of the city safely.
Important note from the team of Procurement Tactics: bear in mind that walking away from a negotiation is not always the same as surrendering like in this example, but there is always a moment in the negotiation where you have to decide what the best deal is taking into account all current variables. For Balian, saving his people became more important than continuing his battle.
2. The Bridgepoint Walk-Away Case – Benoit Bassi, managing director of Bridgepoint, walks away from an important deal
Back in 2000, Bridgepoint, one of the leading European private equity firms, was set on buying a fruit-processing business from the French liquor company Pernod Ricard. The business itself looked lucrative and the company was the leading producer of the fruit mixture used to flavor yogurt.
Benoit Bassi, managing director of Bridgepoint in Paris, was poised to buy this company from Pernod Ricard as it looked like a good deal.
Furthermore, a 5 hour business meeting with his partners cemented the proposal and Benoit Bassi was given the OK to buy the company.
However, the deal never came to be. Bassi suddenly scrapped it overnight and never spoke of it again.
The reason behind Bassi’s walk-away was because his research team discovered a major flaw behind this fruit company; while it did boast it was operating on a global scale, Bassi’s team found out that the economics for transportation and purchasing made the global sourcing of fruit unfeasible. Also, while the market for fruit yogurt was indeed growing, its profitability in many markets was falling rapidly.
As you can clearly see, Bassi surmised that buying this company would not be profitable for the company in the future. Thus, he made the smart decision of walking away from the deal at once.
Real-life Experience Example
Personally, I don’t like to stop or pause negotiations, but I did it many times when negotiating with suppliers. I’ve been in multiple situations in which I chose to -temporarily- walk away from negotiations. Examples of these situations were when suppliers did not come up with a new proposal although they promised me so.
When suppliers did not move at all in the negotiations. When suppliers were asking for an unreasonable price increase, or when I had the feeling I was not dealing with persons that have authority.
When facing one of these issues yourself in your negotiations, don’t hesitate to walk away!
Conclusion
In the realm of negotiation, recognizing a walk-away point is a crucial skill for seasoned professionals. Striking a balance between tenacity and prudence is key, avoiding frustration or financial losses. A walk-away point signifies the moment when continuing negotiations is futile due to misaligned offers. Preparation is paramount, and the strategic use of variables in the negotiation process, such as gathering information and envisioning outcomes, becomes your offensive and defensive tools. Identifying the walk-away point requires precision and timing, as noted in your negotiation variable table. Once recognized, actions depend on the other party’s behavior, emphasizing patience and professionalism. Historical and real-life examples underscore the importance of aligning decisions with objectives, solidifying walking away as a calculated and strategic move in negotiations.
