Walk-away point
Reservation price · Reservation value
A walk-away point is the least favourable deal a party is prepared to accept, based on the value of its best alternative and its priorities.
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Simply put
What it means in ordinary work
It is the line between a deal that is better than your alternative and one that is not. It should be set before the pressure of the room affects judgement.
Why it matters
A clear walk-away point protects against agreeing to terms that look attractive in isolation but are worse than another route. It also gives negotiators calibrated authority.
A hypothetical in practice
A hypothetical buyer calculates that switching to its BATNA would cost 8 percent more over three years. The walk-away point is set below that threshold after accounting for transition risk and management effort.
Common pitfalls
A walk-away point is not always a single price. It can involve a package of price, risk and service terms.
Sharing the exact limit can remove bargaining room. Decide what can be disclosed and why.
Regional lens
How this lands where you work
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As-of date for date-sensitive regional content: 5 November 2026. Read the review policy.