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Business Unplugged™
This blog features Carol Roth's tough love on business and entrepreneurship, as well as insights from Carol's community of contributors.

M&A, Partnerships: What’s a Fair Deal?

Written By: Carol Roth | Comments Off on M&A, Partnerships: What’s a Fair Deal?
How to know that the deal you are signing is fair

There is a short answer and a long answer to the question of “How do I tell if this deal is fair”?

The short answer:  A deal is fair when the seller thinks that they left a few dollars on the table and when the buyer thinks that they paid just a few dollars too much.

The longer answer:  A deal is fair when it is simultaneously a stretch and a win for both parties.  Whether in mergers and acquisitions, licensing, joint ventures or other partnerships, both parties need to be incentivized and feel they are giving and receiving.  Then the deal is a fair one and a fair deal often makes for a good deal.  If the deal is lopsided, it either won’t get signed, will create some bad blood (which always comes back to bite you in the butt down the line) or will have one side not caring enough to do their part to make it work. 

If a deal seems to good to be true, it probably is and won’t be successful; it will fall apart somewhere.  Get to that place that is just past the point of perfection for both sides to give it the best chances of succeeding.

Article written by
Carol Roth is a national media personality, ‘recovering’ investment banker, investor, speaker and author of the New York Times bestselling book, The Entrepreneur Equation. She is a judge on the Mark Burnett (Shark Tank, The Voice, Survivor, The Apprentice) produced technology competition series, America's Greatest Makers, airing on TBS and Host of Microsoft's Office Small Business Academy show. Previously, Carol was the host and co-producer of The Noon Show, a current events talk show on WGN Radio, one of the top stations in the country, and a contributor to CNBC, as well as a frequent guest on Fox News, CNN, Fox Business and other stations. Carol's multimedia commentary covers business and the economy, current events, politics and pop culture topics. Carol has helped her clients complete more than $2 billion in capital raising and M&A transactions. She is a Top 100 Small Business Influencer (2011-2015) and has her own action figure. Twitter: @CarolJSRoth