I was just introduced to the term BATNA - or "best alternative to negotiated agreement". In short, as a prelude to negotiating a deal, you evaluate what your best alternative is if you can make no deal at all. This helps you determine the lowest possible offer that you will accept. Now, as you dig into commentary on BATNA, you will see a lot more detailed analysis, but I think you get the idea.
Even though the term BATNA is new to me, when we have engaged in negotiations, we have always told our clients to consider the alternatives to doing a deal at all. Also, keep in mind, the other side will be trying to guess your BATNA when determining what kind of proposal to make to you. One of the things that we look out for is to look for situations when the other side is making incorrect assumptions that underestimate our clients' alternatives to making a deal.
https://www.investopedia.com/terms/b/best-alternative-to-a-negotiated-agreement-batna.asp#:~:text=The%20best%20alternative%20to%20a%20negotiated%20agreement%20(BATNA)%20is%20the,no%20agreement%20can%20be%20reached.
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