The master of mergers

Commercial lawyer Erich Bachmann knows what it takes to head into a boardroom and weld different parties together into an effective team.

He’s the managing director at law firm Hesketh Henry, one of New Zealand’s largest business mergers and acquisitions specialists.

Over his 30-year career he’s brokered coalitions, mergers and takeovers between both national and international organisations.

He has even dipped his toes into international diplomacy.

‘‘For my sins I’m also the honorary German Consul to New Zealand. Which means I do it for nix.’’

In Bachmann’s experience, negotiation has one very simple rule: ‘‘Don’t treat them like idiots, and show them some respect.’’

Nobody will give you something for nothing, don’t even try to trick them into it – they will be at least as smart as your team, so always leave something on the table for them, he says.

In business or politics, everyone involved has someone they need to keep happy, whether it’s shareholders or voters. ‘‘They need something they can sell to their constituents, even if its not exactly what they came in to get.’’

What successful mergers, and MMP, are all about, is finding a position that the most people agree on and everybody can live with, he says.

‘‘Going in, we’re looking for something that’s workable in the longterm. Although in political terms that might only be three years.’’

Bachmann says sticking to an ideal contract is second nature, because there is nothing in it that contradicts any party’s core values.

‘‘If you have to rush back and check the contract all the time, that means there’s potentially going to be trouble.’’

If he was advising a client heading into talks in as strong a position as Winston Peters – who as king-maker, really does seem to hold all the cards – they’d be taking a similar approach, Bachmann says.

He’d say take the time to get into the best negotiating position possible before letting on you’re ready to talk before people get annoyed because you’re being too cagey.

‘‘It’s a fine line. Patience will start to run out, so I’d be doing a lot of the spade work before then.’’

Get straight what you’re willing to compromise on, and what you’re not. And pick one thing where you won’t stop until you get it, he says.

‘‘Then step back and let the other side show their cards.’’