Deal-Making Process

A Deal-Making Process is a business process (composed of deal making tasks) that enables organizations to identify, negotiate, and finalize business transactions or agreements.

• AKA: Transaction Process, Business Deal Process, Deal Management Process.
• Context:
  • It can typically begin with Deal Strategy Development through setting clear objectives, establishing decision criteria, and defining desired outcomes.
  • It can typically involve Deal Preparation through market research, counterparty analysis, and establishing negotiation parameters such as BATNA and ZOPA.
  • It can typically include Target Identification through analyzing deal making data sources, market opportunities, and building potential target databases.
  • It can typically require Target Evaluation through applying selection criteria, conducting preliminary assessments, and prioritizing potential deals.
  • It can typically encompass Initial Contact through approach strategy development, initial communication, and interest confirmation.
  • It can typically involve Proposal Development through value proposition articulation, offer structuring, and formal proposal submission.
  • ...
  • It can often incorporate Deal Negotiation through negotiation meetings, bargaining techniques, and value creation approaches.
  • It can often include Deal Due Diligence through financial investigation, legal assessment, operational review, and risk evaluation.
  • It can often require Deal Structuring through transaction term definition, deal architecture development, and financial engineering.
  • It can often involve Agreement Finalization through term summarization, contract drafting, and legal documentation.
  • It can often conclude with Deal Closing through final approval, contract signing, payment processing, and asset transfer.
  • It can often extend to Post-Deal Integration through integration planning, synergy realization, and operational consolidation.
  • ...
  • It can range from being a Simple Deal Making Process to being a Complex Deal Making Process, depending on its transaction complexity and stakeholder number.
  • It can range from being a Small-Scale Deal Making Process to being a Large-Scale Deal Making Process, depending on its transaction value and resource requirement.
  • It can range from being a Standard Deal Making Process to being a Customized Deal Making Process, depending on its industry context and organizational requirement.
  • It can range from being a Manual Deal Making Process to being an Automated Deal Making Process, depending on its technology integration level.
  • It can range from being a Transactional Deal Making Process to being a Relationship-Based Deal Making Process, depending on its relationship focus.
  • It can range from being a Competitive Deal Making Process to being a Collaborative Deal Making Process, depending on its negotiation approach.
  • It can range from being a Sequential Deal Making Process to being a Parallel Deal Making Process, depending on its process structure.
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  • It can have Deal Making Efficiency through process standardization, workflow optimization, and technology enablement.
  • It can have Deal Making Intelligence through data-driven decision making, predictive analytics, and market insight.
  • It can have Deal Making Governance through approval workflows, oversight mechanisms, and compliance management.
  • It can have Deal Making Transparency through documentation requirements, information disclosure, and audit trails.
  • It can have Deal Making Adaptability through process flexibility, contingency planning, and alternative scenario development.
  • ...
  • It can be Deal Type-Specific for particular transaction categories like merger and acquisition, partnership, or procurement.
  • It can be Industry-Adapted for specific business sectors like financial services, real estate, or technology.
  • It can be Value-Driven with focus on creating mutual benefit, sustainable relationships, and long-term value.
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• Examples:
  • Deal Making Process Categories, such as:
    • Merger and Acquisition Processes, such as:
      • Corporate Acquisition Process involving target identification, due diligence, negotiation, closing, and post-merger integration.
      • Merger Integration Process for combining business operations, corporate cultures, and organizational structures.
      • Divestiture Process for selling business units or corporate assets to external buyers.
    • Investment Deal Processes, such as:
      • Venture Capital Investment Process for evaluating and funding startup companies through staged investment.
      • Private Equity Deal Process for acquiring and transforming private companies for value enhancement.
      • Real Estate Investment Process for acquiring commercial properties with favorable return prospects.
    • Partnership Formation Processes, such as:
      • Joint Venture Formation Process for creating joint business entities with shared ownership and resource combination.
      • Strategic Alliance Process for establishing collaborative business relationships without equity exchange.
      • Channel Partnership Process for developing distribution agreements with market access providers.
    • Procurement Deal Processes, such as:
      • Strategic Sourcing Process for selecting key suppliers through competitive bidding and capability assessment.
      • Contract Negotiation Process for establishing supply agreements with favorable terms and performance metrics.
      • Vendor Management Process for maintaining supplier relationships and contract compliance.
    • Licensing Deal Processes, such as:
      • Technology Licensing Process for acquiring intellectual property rights to proprietary technology.
      • Franchise Agreement Process for granting business model rights to franchise operators.
      • Content Licensing Process for obtaining usage rights to media content and creative works.
  • ...
• Counter-Examples:
  • Operational Business Processes, which focus on day-to-day operations rather than deal making and transaction.
  • Administrative Processes, which involve routine tasks and organizational management without deal negotiation or value exchange.
  • Product Development Processes, which focus on product creation rather than business transaction.
  • Continuous Improvement Processes, which aim to enhance existing processes rather than complete business deals.
  • Internal Decision Processes, which involve internal stakeholder consensus without external party negotiation.
• See: Business Transaction, Negotiation Process, Due Diligence Process, Deal Making AI System, Contract Management Process, Business Transaction AI System.

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