Bullard House Negotiation Ll

MG473: Negotiation Analysis Lent Term 2021 – Learning Log

1

Instructions: When you have completed this learning log each week, please upload it weekly via the link provided on the Moodle

page, in WORD format (not PDF). The weekly deadline is posted on Moodle and is the same deadline regardless of which seminar

group Zoom class you have attended. Grading: Each of Parts 1, 2 and 3 must be completed and submitted.

Part 1: Pre-negotiation Preparation (in-class)

Your CANDIDATE Number (not Student ID) and Class #

Date and name of negotiation case

Bullard Houses

Your role

Seller

Partner’s student ID(s) & role(s)

STATED PURPOSE (What is this negotiation supposed to be about?)

• Negotiation to reach an agreement on the sale of the Bullard Houses by representing the principals’

(Downtown Inc Shareholders) interests.

INTERESTS (Think broadly, then prioritize. Compare your priorities to find tradeoffs/concessions.)

Mine:

• Satisfy all the interests of Downtown Inc

Shareholders:

– Sell the Bullard Houses

– Agree with the buyer that the houses cannot

be destroyed

– Agree with the buyer that the main objective

of the project is to establish luxury duplex

apartments or houses and not for commercial

purpose – avoid bad press

– Purchase one duplex or house of the project

Theirs:

• Buy the Bullard Houses

• Develop a new attractive project

BATNAs (State in words and in terms of points, dollars, or the appropriate metric)

Mine:

• Sell the Bullard Houses to Grouse for 17.5 million

(7.5 million up front, change the mortgage

guarantor to Grouser, and Grouser will supply all

development capital) – blend commercial and

residential

• Sell the Bullard Houses to Gentrification for 15

million (15 years 13% notes, Downtown will have

to pay mortgage and debts) – 51 luxury row

houses.

• Sell the Bullard Houses to 8.6 million after paying

mortgage and debts – condominium

Theirs:

• Maybe they already have another alternate site

OPTIONS & ISSUES (Brainstorm ways to expand the pie or find a mutually attractive agreement)

• Reduce the price if the company pay all the amount in cash and assume all the costs including the mortgage

MG473: Negotiation Analysis Lent Term 2021 – Learning Log

• Agree that the project can include some commercial establishments (80% residential and 20% commercial)

• Agree the any shareholder can purchase a duplex or house of the project considering that this is not the main

interest of James Bullard.

STANDARDS (Equity, need, fairness, market rates, industry benchmarks, historical data, assumptions…)

• Local regulations do not allow commercial business in the zone

• I assume that Jones & Jones is a serious and reliable company considering that they retain one of the most

important Gotham’s real state agencies.

PROPOSALS (Think in terms of multi-issue packages)

Aspire to (=Target Point)

Content with

Live with (=Reservation Point)

• Payment of 17.5 million and

release Downtown from

mortgage and debts