How Does a Mediation Work? Step by Step

A mediation in a business sale can seem informal, but it actually follows a fixed structure. Knowing the phases in advance makes it easier to understand where you are in the process, and why the mediator asks the questions they do.

1. Welcome and opening

The mediator welcomes the parties and sets the framework for the conversation. The "ground rules" are agreed here — including that everything said is generally confidential, and that both parties participate voluntarily. The mediator ensures both sides understand what a mediation involves, before the process continues.

2. The parties' account

Each party gets uninterrupted time to tell their version of the matter. The purpose isn't to agree here and now, but to have both perspectives laid openly on the table, so the mediator — and the other party — understand what the conflict is actually about.

3. Clarifying needs

The mediator asks deeper questions about the underlying interests and concerns of each party. In a business deal, this might be that a seller isn't only focused on the price, but also on employees being treated well after the takeover.

4. Framing the problem

The parties — with the mediator's help — agree on what exactly they need to find a solution to. A precise framing of the problem makes it far easier to work constructively going forward, instead of continuing to discuss the symptoms of the disagreement.

5. Idea generation

Possible solutions are brainstormed here, often without evaluating them along the way. The more genuine proposed solutions on the table, the greater the chance of finding one both parties can accept.

6. Negotiation and agreement

The parties negotiate toward a specific agreement, while the mediator supports with clarifying questions and keeps the process constructive — without deciding themselves what the agreement should contain.

7. Signing

The agreement is written down, and both parties sign. At the same time, it's typically agreed which information from the mediation may be shared with others (e.g. advisors or authorities), and which remains confidential between the parties.

How long does a mediation take?

For business cases, a full day (up to 8 hours) is typically set aside, while smaller cases can be handled in half a day. If the conflict is complex, several meetings may be needed.

Considering mediation in connection with a business sale? Read about the mediator's role when selling a business, or book a no-obligation call about the Advisory & Mediation package.