The BATNA (Best Alternative To a Negotiated Agreement) is the best outcome a party can achieve if current negotiations fail — the floor below which no deal should be accepted. Introduced by Fisher and Ury in "Getting to Yes", the BATNA is a fundamental M&A negotiation tool: knowing your own BATNA and estimating the counterparty's defines the zone of possible agreement (ZOPA) and prevents acceptance of unfavourable terms under pressure. For a seller, the BATNA may be a competing offer, retaining the business, or an IPO. For a buyer, it may be an alternative acquisition target.

‍

Example: in the sale of a Swiss technology group valued at CHF 22.0 million, the seller holds a CHF 19.0 million indicative offer from a strategic acquirer — their BATNA. Facing a financial buyer proposing CHF 18.5 million, the seller credibly maintains a floor above CHF 19.0 million. This dynamic drives the financial buyer to revise its offer to CHF 20.5 million to remain competitive.

‍

At Hectelion, we help clients identify and strengthen their BATNA before any M&A negotiation to maximise their position and protect against opportunistic pressure.