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Capital Mortgage Insurance Corporation

Dear OTA,
I am asking for your assistance again with a case study. I hope you can assist. I need 2 or 3 pages answering the following questions to complete my assignment.
THANK YOU (Sorry same doc attached 2x's )

1. Analyzed and explained what CMI and CTS bring to the negotiation table.

2. Analyzed and described the personalities and the expected styles of the key negotiators.

3. Evaluated CMI's preparation and determined whether it has enough room to ake concessions.

4. Analyzed and explained how well CMI had prepared itself and if there was anything they left out.

5. Determined and described CTS's possible reaction to the offer.

Thank you so much! Case study attached


Solution Preview

Step 1
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.

Step 2
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 ...

Solution Summary

Capital Mortgage Insurance Corporation is discussed in great detail in this solution.