CNNMoney.com recently reported that Jones Soda terminated an exclusivity agreement with potential purchaser, Reed’s, “to explore an unsolicited proposal sent by a second suitor.”  Jones Soda previously announced plans to be acquired by Reed’s for just under $10 million.  Jones Soda also agreed to reimburse Reed’s for $75,000 in expenses incurred due to its termination of the exclusivity agreement.

 Why would Jones Soda do this?  From a negotiation perspective, when a seller can find at least two bidders, the seller’s leverage is usually strengthened because now they have a good alternative (or Plan B) to each of the bidders.  Finding multiple potential buyers allows a seller to play each buyer against the others to obtain the best possible deal.

 Here, Jones Soda’s negotiators believed the value of terminating the exclusivity agreement exceeds its $75,000 cost.  While time will tell if this move pays off, it is almost always a good idea to take the time to find more than one potential buyer, or, as is the case here, to not look a gift horse in the mouth if a new suitor unexpectedly appears.
________________________________________________________________

 Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts' proven research.  He is also the author of Gain the Edge! Negotiating to Get What You Want (St. Martin’s Press 2004). He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com.