National Distilleries Corp. (B): An M&A Negotiation Role Play - Confidential Instructions for National Distilleries Corp.

Published 24 Feb 2014
Reference 6041
Region Global
Summary

This case is a multi-party M&A negotiation between companies in the liquor business. The target company National Distilleries Corporation (NDC) is the target of two competitors, namely Liquor America (LA) and International Liquor (IL).

Teaching objectives

• M&A and financial negotiations • Increasing the number of parties increases complexity, bringing more opportunities but also more risks • The importance of negotiating the process • Don´t assume it is a competition before you consider all interests • Negotiate based on expectation of value (rewards & risks), not of luck • Legitimacy is what makes sense for the parties • Avoid irrational or unethical decisions under pressure: lying, use of bargaining tactics, treating others as enemies, agent-principal conflicts of interest, parasitic value creation

Keywords
  • Financial negotiation
  • M&A negotiation
  • FMCG
  • Cross-border transaction
  • Competitive bidding
  • Managing process from position of low power
  • Managing complexity
  • Negotiating value, not numbers
  • Win-win vs. win-lose
  • Legitimacy
  • Ethics and negotiation
  • Q21314
  • Corporate Governance
  • Value Creation, Strategy and Implementation