Capital Mortgage Insurance Corporation Essay Example | Topics and Well Written Essays - 1000 words

Capital Mortgage Insurance Corporation - Essay Example Corporate Transfer Services (CTS) is an organization dedicated to the relocation of corporate employees and the real estate functions that are associated with said transfers. The acquisition of this firm would represent a diversification of CMI into a field that would make them a more integrated real estate services company. Discussion Question #1: Prepare a negotiation strategy that can be utilized by Randall and Dolan. What is important for this section is that both Randall and Dolan have found sufficient background information on CTS. Whilst it may be the case that the employee relocation market is big (Estimated at 500,000 relocations annually) What is important to remember is that the company according to the case has â€Å"Barely even reached a break-even point† and that it is only through years of additional work of building up the business can CMI or CTS really recognize a profitable enterprise. Given the stature and experience of the CTS Board, it would seem foolish to take a ‘Hard’ or ‘Soft’ Stance on negotiation as these men (Specifically Elliott Burr) would probably not respond favorably to these strategies. As it is the case that CMI Does not want to pay the $600,000 over the book value of the business and a $400,000 over the book value was offered it is a case of trying to persuade the four CTS executives to meet CMI at a middle ground. As such a â€Å"Principled negotiation strategy† should be employed in which the four stages should be focused on identifying exactly the book value of the firm is, focus on how much CMI wants to build on CTS’ business model, identify that no matter what CTS will be getting a premium on their business and always focus the criteria on objective measures.