Dealcraft: Insights from Great Negotiators cover image

Dealcraft: Insights from Great Negotiators

Steve Schwarzman II: Hardball

Oct 7, 2024
Steve Schwarzman, Co-founder and CEO of Blackstone, shares his hardball negotiation insights from his illustrious career. He discusses navigating tough negotiations, including a railroad acquisition where psychological strategies played a key role. Schwarzman reflects on high-stakes situations like the economic turmoil post-Iraq and Blackstone's investment challenges. He emphasizes adapting tactics, understanding dynamics, and asserting authority to achieve successful outcomes. The conversation reveals the delicate balance between strategy and relationship-building in high-pressure deals.
01:02:14

Podcast summary created with Snipd AI

Quick takeaways

  • Steve Schwarzman's innovative tactic of imposing costs on a resistant counterpart illustrates the importance of strategic problem-solving in tough negotiations.
  • Understanding the context and motivations of the opposing party is crucial, especially when negotiating under challenging or high-pressure circumstances.

Deep dives

Steve Schwarzman's Negotiation Strategies

Steve Schwarzman emphasizes the necessity of innovative problem-solving in negotiations, as evidenced by his approach to a difficult deal with Harold Simmons. When faced with Simmons's refusal to sell his stock to CSX, Schwarzman pivoted from simply trying to entice Simmons with a lucrative offer to devising a strategy that would make holding onto the stock a burden for him. He cleverly proposed to create an illiquid security that would trigger tax liabilities without providing any cash dividends, effectively increasing Simmons's costs for holding out. This tactical shift illustrates how intractable negotiations can sometimes require imposing a cost to encourage a favorable agreement.

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