Bio Pharm Planning Document Example PDF

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Summary

case study for negotiation discussion...

Description

1 Negotiation Planning Document Name: Lihua Wang Issue

Negotiation Title: BioPharm-Seltek Self-BioPharm

Price

$8 1

*the plant was insured against $8 million, so perhaps just worth 8 million in seller’s mind; *the accounting book shows $12 million

Workforce

Wants to keep

2

No need to spend time to train

3

Don’t want to buy it Not in strategic interest

4

Don’t want to pay The tax was owed from the past

patent tax

BATNA

Build a new plant; buy plant 10 miles away from headquarter.

Reservation Close to $40 million Build a new plant ($25m), lost profit (12m), Price train workforce, & FDA approval; Target *$8 million: the insured value *need to find out the reservation price of the seller, if possible, ideally that would be my target price

My role: BioPharm Other-Seltek

At least $16 million; maybe ask for $25 million 1 The market price; ready workforce; ready equipment; has been managed very well, etc.

Unknown, assume indifferent but also possibly want to keep if need to compensate workers 4 Need to find out 2 3

Want to sell it Don’t need it anymore Don’t want to pay Unknown. Need to find out how they argue about it

Unknown: need to find out, if possible. Unknown, need to find out if possible.

Unknown, need to find out if possible. Possibly the market price of $16m, which is what they can justify reasonably but they may argue for higher price such as $25 million

Other notes: I will perhaps ask some more information before asking for the price or making the first offer…(other strategies and notes?) Location: 70 miles away from headquarter. Can use as an argument to lower price....