What negotiation approaches are least likely to achieve a satisfactory resolution of a deal in NZ?

Any behaviour which negatively affects the creation of such trust can put the conclusion of such transactions at risk. This is because, with a population of only four million, New Zealand remains a country where most business is done through personal contacts. Rightly or wrongly Kiwis tend to carry this approach through to international negotiations.

For cross-border M&A transactions, New Zealand companies and their advisers will have performed due diligence on the foreign transaction entity at an early stage, and will expect that such homework is reciprocated. As it is insulting for US businesses to be mistaken as Canadian, so it is insulting for New Zealand businesses to be considered Australian. Not because there is anything wrong with Australia, but because this displays a lack of professionalism and understanding of pan–global and regional economic realities by the offshore entity.

Offshore investors should not assume that New Zealand is a developing country just waiting for their world-beating technology, product, expertise or other service offering. New Zealand is a mature country technologically, with global corporates such as Microsoft and Samsung releasing their products first into New Zealand for market testing and refinement.

Generally, international entities should never adopt a ‘superior’ or bullying approach in negotiations with New Zealand businesses. New Zealand is a small but proud country, known for punching above its weight on a global achievements basis. Kiwis do not like to be told that something cannot be done, so a consistently positive approach to negotiations and a friendly demeanour will stand offshore entities in good stead.

Mark Copeland Lawyers, in Rotorua, in the New Zealand commercial, corporate and real estate Firm of IR Global, a global network of over 300 professional services firms in over 150 countries who are able to provide expert local advice on international business transactions.

Mark was recently invited to share his perspective on doing business in New Zealand as a part of the IR Global feature “Overcomming barriers to Win-Win: Smoothing the deal process”.  Read what Mark and 8 other member contributors had to say here:  httpss://www.linkedin.com/feed/update/urn:li:activity:6355067648262316032/