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    Sample Neg Plan

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    Kampani Sidhant
    Happy Singh owns Happy Taxi and GoTaxi, a taxi service and car servicing company. He wants to sell his stakes to pursue new investments but wants to ensure his companies' values and CSR commitments are maintained. His negotiation plan outlines his needs, interests, strengths, weaknesses, goals, and options. His best alternative is to approach other international buyers if a deal cannot be reached. Failing that, he would sell domestically or pursue an IPO to reduce his stake while maintaining influence. He hopes to sell both companies together for over $190 million by end of 2017.

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    Sample Neg Plan

    Uploaded by

    Kampani Sidhant
    121 views5 pages
    Happy Singh owns Happy Taxi and GoTaxi, a taxi service and car servicing company. He wants to sell his stakes to pursue new investments but wants to ensure his companies' values and CSR commitments are maintained. His negotiation plan outlines his needs, interests, strengths, weaknesses, goals, and options. His best alternative is to approach other international buyers if a deal cannot be reached. Failing that, he would sell domestically or pursue an IPO to reduce his stake while maintaining influence. He hopes to sell both companies together for over $190 million by end of 2017.

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    Happy Singh owns Happy Taxi and GoTaxi, a taxi service and car servicing company. He wants to sell his stakes to pursue new investments but wants to ensure his companies' values and CSR commitments are maintained. His negotiation plan outlines his needs, interests, strengths, weaknesses, goals, and options. His best alternative is to approach other international buyers if a deal cannot be reached. Failing that, he would sell domestically or pursue an IPO to reduce his stake while maintaining influence. He hopes to sell both companies together for over $190 million by end of 2017.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    121 views5 pages

    Sample Neg Plan

    Uploaded by

    Kampani Sidhant
    Happy Singh owns Happy Taxi and GoTaxi, a taxi service and car servicing company. He wants to sell his stakes to pursue new investments but wants to ensure his companies' values and CSR commitments are maintained. His negotiation plan outlines his needs, interests, strengths, weaknesses, goals, and options. His best alternative is to approach other international buyers if a deal cannot be reached. Failing that, he would sell domestically or pursue an IPO to reduce his stake while maintaining influence. He hopes to sell both companies together for over $190 million by end of 2017.

    Copyright:

    © All Rights Reserved
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    THE FOURTH NLU DELHI – HSF

    INTERNATIONAL NEGOTIATION
    COMPETITION

    NEGOTIATION PLAN

    IT’S ALL IN THE DRIVING SEAT


    ________________________________
    FOR HAPPY TAXI

    TEAM CODE: 10
    NEED:

    • To sell Happy Singh’s stakes and interests in his entrepreneurial ventures in exchange
    for the aspired compensation to an acquirer whose business values and ideals are
    strategically aligned with his own business practices in order to pursue his prospective
    investment plans.

    INTERESTS:

    • To formulate a satisfactorily structured scheme of payment of compensation in order


    to pursue the post retirement investment strategy in the automobile spares segment.
    • To receive a composite deal for both Happy Taxi and GoTaxi or arrange for an
    exclusive collaboration that secures the growth momentum of both the ventures.
    • To ensure the continuance of social conviction and compliance of the CSR regime.
    • To ensure time limit compliances in the conduct of various phases of the deal.

    STRATEGIC STRONG POINTS:

    • Happy Taxi is a well-established and immensely successful taxi service


    company/business based in New Delhi, India and operates in several important Indian
    cities, having a commendable and trustworthy reputation in the market along with a
    strong brand presence.
    • The commitments and contributions to the CSR dedicated to Environment Protection
    has resulted in Happy Taxi being cherished within the Corporate Sector due to which
    they have acquired major Corporate Houses as their Clients.
    • Happy Taxi has a stringent screening process for registration of its drivers which
    involves a thorough due diligence into their competence.
    • Happy Taxi’s subsidiary GoTaxi deals in the business of Car Servicing which would
    increase their profits due to a surge in demand in the Car Servicing industry after the
    recent government regulations mandating the taxi business to have low carbon
    emissions.

    STRATEGIC WEAK POINTS:

    • Need for consideration value to be paid in Cash.


    • Time limitation for completion of sale of Happy Taxi and GoTaxi.
    • Change of Control Clauses in the Services Contracts entered by Happy Taxi with its
    Corporate Customers.
    • Requirement of Continued strong Commitment to its Revenue biting CSR Activities.
    • Reasonable threat to the customer base and reputation of Happy Taxi subsequent to
    acquisition by RideOn.

    GOALS AND OBJECTIVES:

    • To sell shareholding in both the Happy Taxi as well as GoTaxi, however, if the same
    is not feasible then to sell Happy Taxi alone by carving out GoTaxi but subject to
    RideOn assuring to encourage taxi drivers on its network to use GoTaxi Servicing.
    • Time bound takeover of Happy Singh’s shareholding in both Happy Taxi as well as
    its subsidiary GoTaxi for a consideration value of not less than $US190 million by
    end of 2017.

    1
    • To insist on payment of entire consideration value upfront in cash. Alternatively, to
    insist upfront payment of minimum $US100 million and payment of balance
    consideration in staggered payments.
    • To secure assurance from RideOn for the continuance of Happy Taxi as well as
    GoTaxi on the same business principles and ethics with promotion of good reputation,
    High Credibility and the Strong brand value of Happy Taxi and GoTaxi within the
    International Taxi Service Market.
    • To secure commitment from RideOn with respect to continuance of Happy Taxi’s
    CSR Projects pursuant to the acquisition of the Happy Taxi as well as GoTaxi.

    VIABLE/CONCILIATORY OPTIONS:

    • To accommodate the interests of both the companies by compromising on the


    estimated value for the purchase of Happy Taxi.
    • Restructuring of the CSR activities to reach a viable option for the comfort of
    RideOn.
    • To plan a discounted consideration provided that $US100 million is paid by
    December, 2017.
    • To appoint Happy Singh as the consultant to ensure a smooth transition of the
    ownership of the company.
    • To leave at the discretion of RideOn to pay a reasonable amount by December 2017,
    and further negotiate for a staggered payment with applicability of agreed interest
    rates.

    BATNA:

    • To approach RideOn’s competitors in the international arena or investors inclined to


    diversifying and expanding into the public Conveyance sector.
    • If GoTaxi and Happy Taxi’s businesses cannot be transferred together, GoTaxi would
    look forward to having a merger with an automobile spare parts company which
    would ensure that Happy Singh acquires a passive stake in the automobile spare parts
    company. Thereby, Happy Singh’s immediate requirement for cash would be
    considerably reduced and he shall be able to leverage his secured position in
    conducting further negotiations for his stake in Happy Taxi.
    • Forming a joint venture with domestic players in respective cites wherein Happy Taxi
    would divulge its managerial and operational interests in their favor in exchange for
    US$100 million before December 2017, with a proportionate passive stake.

    WATNA:

    • To sell off the stakes of Happy Taxi to any prospective Domestic buyer in the most
    favorable deal without having any extraneous consideration.
    • To initiate an extensive human resource expansion in terms of corporate management
    to transform the company into an organized business and eventually launch an initial
    public offering (“IPO”). The IPO shall ensure that Happy Singh’s stake in the
    company is reduced to a minority which would result in a change in the Company’s
    management. Thus his role would be reduced to Happy’s passive engagement by

    2
    proposing his participation as a consultant to the Company, with the grant of
    preferential opinion to ensure favorable decision making for the benefit of the
    Company.

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