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This case presents a transcript of two professional negotiators of the Discount and Hawkins real estate negotiations. It highlights the challenges of creating value for both sides in the deal and provides a glimpse of how one set of professionals structured an agreement.

In the 1970s, a series of unpleasant revelations about corporate conduct, culminating in the public disclosure about unsavory business practices abroad by more than 400 U.S. corporations, jarred popular perceptions concerning business ethics. Congress responded by enacting the Foreign Corrupt Practices Act (FCPA) in late 1977. However, as time passed, U.S. businesses complained that they were at a competitive disadvantage to foreign companies because many countries lacked an equivalent to the U.S.'s FCPA. In December 1997, OECD member countries and five nonmember countries signed a Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. All signatories agreed to introduce legislation making foreign bribery a crime. This case discusses anticorruption measures and provides a fictional case study to illustrate the issues involved in a more concrete way.

This case presents an ethical choice: How should a prospective buyer respond when a homeowner quotes a price that the buyer knows is significantly below market value? The case describes a private transaction in which the prospective seller is fully competent mentally but is apparently uninformed about current market prices. The buyer could agree to the asking price (or even counter with a lower figure) without taking any financial risk, because he or she could obtain appropriate guarantees of good title, absence of environmental problems, and so forth.

This case presents the history and current position of Russia's second-largest oil company, YUKOS, as it seeks listing on the NYSE as an ADR and attempts to rid itself from a punishing "governance discount" by the capital markets. This is a company with a history of significant corporate governance abuses that is, more recently, attempting to reform its ways. Although the market value of the company has risen dramatically over the past year (2000), it is still selling at a whopping discount from the imputed market value of its gigantic oil and gas reserves. What more should YUKOS be doing to eliminate its governance discount? How can any program be implemented successfully given the current ownership structure of the company?

This case consists of a series of short vignettes illustrating several auctions: the auctions for Hillary Clinton's biography and the talents of baseball star Alex Rodriguez; eBay online auctions; the Turkish government's auction for a 51% stake in its state-run gas station chain; and the 1999 merger and takeover involving Warner-Lambert, American Home Products, and Pfizer.

Management scholars have often argued that trust plays a key role in economic exchanges, particularly when one or another party is subject to the risk of opportunistic behavior and incomplete monitoring or when problems due to moral hazard or asymmetric information arise. These conditions are almost always present in the case of corporate alliances and joint ventures. However, one attribute of relationships--"relational quality"--is fundamental to the maintenance of good working conditions in two-party alliances where past experience and the shadow of the future play important roles. Relying on a growing body of theory and a number of case studies, the authors develop a framework for thinking about trust in dynamic and practical terms. They also provide recommendations for managing relational quality in alliances as a strategy for enhancing value.

Strategic alliances continue to be important tools of competitive strategy. However, many alliances do not achieve their partners' collaborative objectives and are terminated prematurely. As a result, alliances are often described as inherently unstable organizational forms that are subject to high rates of failure. In addition to the problems associated with not achieving collaborative objectives, a related issue has received limited attention. Although alliances are prone to failure, there are numerous examples of strategic alliances that continue for years despite failing to accomplish partner objectives. This article examines such strategic alliances. However, it does not focus on why failure occurs, but on the variables that contribute to firms' persistence with failing alliances. It also provides measures that can effectively counter persistence.

Describes an initiative by Guinness, LLP to revise the process by which it centrally authorizes, supports, and reviews negotiations that are undertaken worldwide on its behalf. Senior managers wished to give regional officers enough discretion to respond to local conditions while still maintaining centralized control and coordination. Includes detailed descriptions of two such negotiations, one involving the dissolution of a partnership, the other a possible acquisition.

Discusses potential conflicts of interest that venture capitalists face in dealing with entrepreneurs. Critiques arguments that such conflicts are easily managed and unproblematic. Suggests four ways to address potential conflicts.

Supplements the (A) case.

Supplements the (A) case.

Supplements the (A) case.

This case describes one of the greatest LBO failures of the 1990s. It presents an overview of the difficulties two experienced buyout sponsors were forced to deal with.

Supplements the (A) case.

Confronted by a business proposal that is remarkably similar to a project recently financed by a sister office, venture capitalist Monique LeMieux ponders what she should do.

Explains the equity cash flow method of valuation as it applies to leveraged buyouts. Also explains: 1) earnings and cash flow forecasts, 2) debt structure and the cash sweep, 3) the cashing out horizon and terminal valuation, and 4) the target IRR method of valuation.

Explains the equity cash flow method of valuation as it applies to leveraged buyouts. Also explains how to implement the changing cost of equity method using the CAPM.

Documents attempts to restructure a public-private partnership between the operator of a $200 million trash-to-energy cogeneration plant and a consortium of two dozen Massachusetts municipalities. Describes the process that led to a one-sided agreement, as well as the legal developments that opened up the possibility of a revision.

Supplements the (A) case.

Anatolia National Telekom is a multiparty negotiation simulation patterned after the Turkish government's aborted attempt to privatize its state-owned telecommunications monopoly, Turk Telekom, in late 1997. Provides participants with an opportunity to identify and negotiate complex issues related to the valuation and sale of a state-owned enterprise in an emerging market. Members of each negotiating team are valuing a 20% equity stake being offered by three "selling" teams to three prospective "buying" teams representing different types of foreign investors.