Regardless of what people generally think about Wall Street bankers, the truth is, Wall Street bankers are negotiation geniuses.
If Wall Street bankers are good at only one thing, that has to be negotiation. Whether they want to acquire a company or trade a stock, they have badass negotiation tricks for cutting any deal to their advantage.
In fact, anyone who wants to master the art and science of negotiation won't go wrong by learning from them.
Here are some negotiating tricks Wall Street bankers use to get good deals all the time:
1. Asking for the best offer
Since the goal of negotiation is to seal a deal for the best price possible, Wall Street bankers are never shy to ask for the best offer from the offer party. They do this with so much confidence that the other party feels compelled to give an additional discount on the price.
2. Giving reasons (for everything)
At the risk of being annoying, Wall Street bankers give reasons for every request or decision they make during a negotiation process. They explain why they think a discount is necessary. They explain why they do not agree with some terms laid down by the other party. They give reasons for everything. And this works like magic for them because people like reasons. Even though their reasons might be sometimes silly, they always try to give one.
3. Walking away when necessary
Wall Street bankers are always ready to walk away when a deal heads in a direction they don’t want. This in itself is a powerful negotiation tactic that usually compels the other party to review their terms. By walking away with all confidence, they indirectly tell the other party: "There are many other deals out there. I can always find a better one among them."
4. Stalking the other party
Another tactic Wall Street bankers use to win negotiations is to get as much information as possible about the other party. They then try to use that information to their own advantage.
5. Being polite
Even if the negotiation process gets heated up, Wall Street bankers never lose their calm; they always remain polite and civil. Truth is, most negotiations lead to long-term relationships. Wall Street bankers understand this, so they do not want to blow up the future by acting silly.