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Set in May 2000, these cases reflect the separate perspectives of the CEOs as they approach the negotiations of TSE International to acquire Yeats Valves. The task for the student is to complete a valuation analysis of the target and buyer, and to negotiate a price and exchange ratio with the counterparty. Each case contains a financial forecast only for that side; therefore an important element in the negotiation is to obtain the private information of the other side, analyze it, and successfully negotiate terms of acquisition. The cases are relatively simple, and are offered as a first exercise in the valuation of the firm and negotiation of an acquisition. The case may be used to pursue some or all of the following teaching objectives: 1) Exercise valuation skills. 2) Exercise bargaining skills. 3) Illustrate practical concerns about mergers and acquisitions.

Set in May 2000, these cases reflect the separate perspectives of the CEOs as they approach the negotiations of TSE International to acquire Yeats Valves. The task for the student is to complete a valuation analysis of the target and buyer, and to negotiate a price and exchange ratio with the counterparty. Each case contains a financial forecast only for that side; therefore, an important element in the negotiation is to obtain the private information of the other side, analyze it, and successfully negotiate terms of acquisition. The cases are relatively simple, and are offered as a first exercise in the valuation of the firm, and negotiation of an acquisition. They may be taught singly in usual case-discussion fashion, or combined into a joint-negotiation exercise where students are assigned parts to play. Used in a bilateral bargaining exercise, two teams of students are designated, each team representing one side of the negotiation and receiving a case designed for that team. The bargaining exercise provides a particular opportunity for joint teaching among instructors in finance, strategy, human behavior, and negotiation.

The case study analyses competition in the automobile industry in Zimbabwe, a developing economy. From that perspective, it discusses Puzey and Payne’s business operations; a company with a long-standing history in the country’s automobile industry. Since its establishment during the Colonial era, the company endured a prolonged period of rapid car and spare parts sales decline in 2012. Following a management buyout deal in 2013, the decline in sales proved to be its real dilemma and it required strategic decisions to diffuse the impact of the “grey markets”. Government policies added to the company’s problems.

The case study follows a qualitative research approach. Information about Puzey and Payne’s business operations was gathered from archived materials, through qualitative conversations as well as company artefacts. Published materials in newspapers and magazines were used to provide background information.

The case study is appropriate for both undergraduate and postgraduate students studying International Business Management.