CMI and CTS bring to the table their respective offer and the value of their firm. Specifically, CMI brings to the table an offer of $820,000. CTS brings to the table a book value of $420,000, and the goodwill of the firm. The CMI bid is for 100 percent of the ownership of the company. In addition, the $2 million in outstanding notes will pass through to the new company owned by CMI. Further, CMI will agree to retain Tom Winder as CTS' general manager. Finally, CTS will be moved to the office of CMI in Philadelphia.
The personalities of Randall and Nolan are such that they have carefully analyzed the exact position of CTS. They have considered its financial position. They have found that CTS was not performing in accordance with the expectations of its shareholders. It was not performing to the liking of its key personnel. The negotiation strategy that will be used by CMI will be a collaborative negotiation(a). The style will enable CTS to get a fair deal and at the same time CMI will be able to takeover CTS by paying a reasonable premium for goodwill. On the other hand, the negotiation style used by CTS will depend on their partners. The key negotiators are William Burr and Thomas Winder. In addition, William Lehman and Michael Kupchaka's opinion will also matter. Since each of these persons is related to real estate business, and the acquisition is likely to affect Winder and Burr directly, the negotiation strategy that will be used by CTS will be a balanced negotiation. This means a balance between competitive negotiation and collaborative negotiation. At times the style of CTS will be win-lose and at other times it will be win-win (b).
CMI's preparation is based on a number of things. The benefit that CTS will bring to the company is considered. In addition, CMI has considered the book value of CTS. Further CMI had considered the value of acquiring human resources. He considered Burr to be valuable because he was an important and respected MetroNet...
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