One key guideline that I would follow within the negotiation of the acquisition of Corporate Transfer Services include first setting ground rules to make the negotiation pleasant and safe. The perception of the four CTS owners are positive and may be fairly easy to start discussing an issue while in a good mood. But negotiations can open a can of worms, so be prepared for negative emotional reactions. Negotiations for an investor are usually successful when there is a motivated seller. In this case, the four owners are motivated to sell CTS because they already have enough on their plate to deal with. The negotiation process will consist of the following: •Prepare: Know what you want. Understand them.
•Open: Put your case. Hear theirs.
•Argue: Support your case. Expose theirs.
•Explore: Seek understanding and possibility.
•Signal: Indicate your readiness to work together.
•Package: Assemble potential trades.
•Close: Reach final agreement.
•Sustain: Make sure what is agreed happens.
The way one party communicates verbally or non-verbally can have severe complications or great strides in the overall negotiation. First, I would establish a communication guideline to allowing one party to speak without interference and then for another party to respond. Secondly, I would have my team watch the non verbal communication such as body language and to pay attention to other team’s non verbal communication as well. One model I could follow is the transactional model of communication involving two parties. I would classify CTS as one party because Burr usually speaks on behalf of the entire four owner group. Since CMI has already completed most of its research on CTS, most of the questions will focus on the price of the sell. CTS are willing to sell is more than motivated but as stated in the case, the main obstacle for both parties is agreeing on a price. Some questions that CMI would use are questions...