Negotiate a Deal Like an A-List Celeb

Celebrities and their reps consider many angles when structuring compensation for a project. If you’re considering the sale or acquisition of a company, you should do the same. Why? Because it is not only what but how you present your assets to the other party, along with the terms for which you negotiate a transaction, that can make all the difference. See what these stars did that worked.
Sylvester Stallone Insisted on More Than Money – Stallone wrote Rocky but allegedly refused to sell the script until he was allowed to star in the film. As an unknown actor at the time this was pretty risky, but it all came down to what he ultimately wanted from the deal. Instead of achieving success as a storyteller alone, he built a longstanding career as a blockbuster action star. Deal Tip: Consider what you want to get out of a deal, financially and otherwise. Are you looking to retire with a comfortable nest egg? Expand your service line? Know your real motivations.
Sandra Bullock Leveraged Her Market Success – Coming off her Oscar win and box-office success from the Blind Side (an actor’s EBITDA equivalent), Bullock allegedly negotiated a deal that included $20 million first and then an additional 15 percent of first-dollar gross for Gravity. The film took in an estimated $723 million in world box office sales, that potentially netted the star another $70 million. Deal Tip: When coming to the table, consider tangibles and intangibles such as brand power, client lists, in-house talent, market share, industry trends, proprietary processes and more.
Cameron Diaz Took Less Up Front for a Bigger Payout Later – For her role in the little-remembered but profitable film Bad Teacher, Cameron Diaz agreed to accept much less than she would normally command. She took $1 million up front in return for a percentage of box office sales, which ended up bringing her $42 million. Deal Tip: Factor in your needs and tax situation before structuring a lump sum payment, distribution over time, partial ownership or other option.
Van Halen Put the Devil in the Details -Legend has it that should Van Halen have found even one brown M&M backstage in a bowl required by contract, he could legally cancel a scheduled appearance. As the rockstar explains here, the line-item stipulation (no brown M&Ms) was inserted deep into contracts to ensure promoters were reading them closely and therefore clear about the extensive physical requirements and safety measures needed for such a colossal show. Deal Tip: Go over “details” such as the future roles of company staff and other points that could make a smoother transition.
Celebrities wouldn’t think of going it alone in the complex deal process, and you don’t have to, either. Experts like those at Talley LLP who’ve negotiated hundreds of M&A transactions can help you make the most of a transaction based on your goals and priorities. 
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