One of the biggest disagreement between the two companies was the equity value of Lombardi. According to Lombardi, their company was valued at $8M, Hagilent Technologies’ equity expert rated Lombardi as a sole entity around $1M - $1.7M. Even though Hagilent Technologies equity expert explained that valuing a band name was difficult, Hagilent Technologies was disappointed to learn that the value was lower than the price offer and lower than their expectations (Gouveia & Lee, 2016). This issue brought the two companies into a difficult argument as they could not agree on the equity value. In one hand, Hagilent Technologies felt like Lombardi was cheating them of the value and they were asking for much more of what their company was valued.
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At this point Hagilent Technologies did not want any other company to buy Lombardi, they wanted this company for themselves, but they felt it was necessary to see the financial reports because seeing them would help them make a clear decision, and they would not be blinded by established success of Lombardi. As requested, Lombardi provided with them, but for Lombardi showing the financial reports did not seem to make a difference in the final negotiations as our numbers were nowhere close. However, both companies wanted to work with each other on this deal. Lombardi believes Hagilent Technologies was the best candidate to keep their legacy and Hagilent Technologies did not want to miss the opportunity of buying Lombardi and expand their business to other …show more content…
The final purchase price offered by Hagilent Technologies was $5M and Lombardi cannot come below $8M as that is where previous offers have been and Hagilent Technologies stands to benefit significantly from this deal. In hindsight, it appears Lombardi was not well-prepared to negotiate with Hagilent Technologies because they seem to have done their homework unlike the companies they have dealt in the past and they seemed very impressed with their co-negotiator Annabel Chuan. Annabel Chuan was very prepared and a very challenging negotiator, she was able to keep the information going back and forth. However, Lombardi felt that there was still a lack of information sharing, neither company was prepared or ready to share all of their
At this point Hagilent Technologies did not want any other company to buy Lombardi, they wanted this company for themselves, but they felt it was necessary to see the financial reports because seeing them would help them make a clear decision, and they would not be blinded by established success of Lombardi. As requested, Lombardi provided with them, but for Lombardi showing the financial reports did not seem to make a difference in the final negotiations as our numbers were nowhere close. However, both companies wanted to work with each other on this deal. Lombardi believes Hagilent Technologies was the best candidate to keep their legacy and Hagilent Technologies did not want to miss the opportunity of buying Lombardi and expand their business to other …show more content…
The final purchase price offered by Hagilent Technologies was $5M and Lombardi cannot come below $8M as that is where previous offers have been and Hagilent Technologies stands to benefit significantly from this deal. In hindsight, it appears Lombardi was not well-prepared to negotiate with Hagilent Technologies because they seem to have done their homework unlike the companies they have dealt in the past and they seemed very impressed with their co-negotiator Annabel Chuan. Annabel Chuan was very prepared and a very challenging negotiator, she was able to keep the information going back and forth. However, Lombardi felt that there was still a lack of information sharing, neither company was prepared or ready to share all of their