43. What is a conversational agent?

44. What problems may an acquisition bring to a target company?

A target company is a participant, either willing or unwilling, in merger and acquisition activity. The target could be a publicly traded company in the stock market or a privately held entity that is being acquired or taken over. Some takeover companies put themselves on the block, or up for sale, in a public manner so that the financial industry can circle the prospect as a potential takeover candidate. Other targets might be the product of a corporate raider who looks for undervalued companies to buy.

When the management team of a corporation decides it's time to sell the business, it may place the company on the block. This is a public way for a target company to let potential buyers know that it's interested in being acquired for one reason or another. Management might tout the merits of the target company in a public statement in an attempt to generate the best possible financial offer for the deal. The value of a target company might be the biggest disconnect between buyer and seller, although there are ways to realistically assign a value to a potential acquisition target.

A potential suitor of a target company might use a price to earnings ratio, or P/E ratio, to value the takeover target. This is a way to compare the target with other companies in the same industry. It is a mathematical equation that includes taking the stock price and dividing it by a company's earnings per share, which is a measure of profits. Then, by comparing the result to similar businesses, the buyer can gain some leverage if the target company is trailing some of its industry peers.

A shareholder activist, which can also be referred to as a corporate raider, seeks to get involved in a company that is believed to be underperforming, or not delivering the best possible value to shareholders. This type of investor has capital to invest and is not usually a welcome intruder on a target company. If the shareholder activist believes that the business model of a company can be improved and that management is not doing the best possible job, this investor might begin buying shares of stock to begin the process. Eventually, after a certain percentage of company stock is owned, the activist might attempt to buy the target company or obtain a seat on the board of directors to gain at least some influence.

46. What are the key techniques used during the negotiation?

Learn How to Get What You Want Out of Any Situation

Effective negotiation techniques are useful in many everyday situations: in the workplace with colleagues, during a sales transaction or even within personal relationships. Defined by BusinessDictionary.com as “bargaining (give and take) process between two or more parties (each with its own aims, needs, and viewpoints) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict,” negotiating is a skill set which few of us can afford to forego. Though you undoubtedly already possess many important business skills, you need to complement them with effective negotiation techniques in order to reach the next level of professional success.

A Primer on Effective Negotiation Techniques

In an article on eHow.com entitled “Effective Negotiation Techniques,” online content writer Carolyn Williams offers five ways to ensure a satisfactory negotiation process.

• Have Confidence – Regardless of how badly you may need a certain outcome from your negotiations, never let the other party think that you are desperate; doing so puts you in a weaker position and gives them greater leverage over the situation.

• Come Prepared – Before you go into any negotiation, make sure you have considered all variables which might arise. Should unexpected issues come up, end the negotiations and educate yourself on the new matter before rejoining the process.

• Build a Buffer – Never begin with your final offer. Give yourself a sufficient “cushion” between what you are asking for and what you actually want. This will enable you to make compromises without giving up anything important, and demonstrates to the other party that you are flexible.

• Know Your Limits – Decide beforehand what your absolute minimum outcome is, and do not be afraid to leave the negotiations if you cannot get it.

• Stay Cool – If negotiations become argumentative, walk away and “take five” to reassess your situation. If the other party is not willing to come to an acceptable compromise, consider whether it is more beneficial for you to continue or to simply end the negotiations.

Where to Learn Proven Effective Negotiation Techniques

The three-course Executive Certificate in Negotiation, offered 100% online by the University of Notre Dame’s Mendoza College of Business, empowers you with the skills you need to prevail in business negotiations and beyond. Learn effective negotiation techniques from the same distinguished professors who teach on the Notre Dame campus, with the convenience only an online program can provide:

• Watch lectures via streaming video or CD-ROM on a flexible 24/7 schedule; there are no required login times

• Discuss course topics with instructors and classmates using live chat rooms, message boards and email

• Choose from 12 course start times throughout the year

• Complete each negotiation certificate course in eight weeks or less