Lombardi Co. (A): A Company Buyout - Confidential Instructions for Luca Lombardi

Published 24 Mar 2016
Reference 6180
Region Global
Length 4 page(s)
Summary

A multi-issue 1-on-1 negotiation between an aging Italian entrepreneur in North Africa (Luca Lombardi) and a young M&A specialist from a large Asian corporation (Anna Chuan). All the due diligence has been completed and the parties are now ready to discuss the price for the Lombardi company. Role-players can either fall into bargaining (an exchange of numbers) since their ideas of what the company is worth are completely at odds, or discuss the assumptions behind their numbers and valuations to reach a legitimate agreement for both parties.

Teaching objectives

. Negotiating M&A and one-shot transactions in a win-win way . The difference between win-lose bargaining and win-win value claiming . The use of process to maximize value claiming . Using legitimacy, justice and fairness to claim value, while avoiding concessions

Keywords
  • Negotiating M&A
  • Start-up and entrepreneurship
  • Legitimacy, fairness and justice
  • X-cultural differences
  • Bargaining and Value claiming
  • Communication and Process
  • First offer and counteroffer
  • Concessions
  • Q31516