Problem-Solution Negotiation Strategy

A negotiation strategy focused on understanding the other party's needs rather than accepting rejection, demonstrated through Anne Mahlum's business experiences.

Core Negotiation Philosophy

• Don't accept "no" as a final answer
• Ask what the other party needs to make the deal work
• Focus on solving the underlying problem rather than the initial rejection

Real-World Applications

Landlord Negotiations

• Challenge standard requirements like security deposits
• Response to "we always require deposits":
  • "That's not really a response - what are you trying to protect against?"
  • Offer alternative solutions to address their actual concerns
  • Propose different ways to provide security (corporate guarantees, etc.)

Private Equity Deals

• When valuation seemed high ($60M for company):
  • Shifted focus from number to terms
  • Asked what they needed to make deal work
  • Solved concerns through preferred returns
  • Offered guarantee: "You won't see another dime until you make 2.5x your money"

COVID-19 Rent Crisis Solutions

• Instead of defaulting on rent:
  • Extended lease terms
  • Increased rent in later years
  • Added years to back end of lease
  • Created win-win scenarios that protected both parties

Key Principles

• Make people articulate what's important to them
• Focus on total value over immediate terms
• Find creative solutions to address core concerns
• Structure deals that protect both parties' interests
• Think long-term relationship over short-term gains