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Many companies do not permit the negotiating manager to price the deal for fear that he or she will grow to be too personally invested and overpay. Typically a better-level supervisor sets a value ceiling earlier than negotiations start; any negotiator or enterprise-unit manager who needs to go over the ceiling must explain why and get specific approval. Hutchison Whampoa and AlliedSignal each use that approach. In truth, AlliedSignal’s CEO, Larry Bossidy, has final authority over all costs until a deal is so giant that it requires board approval.
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