Subject category:
Entrepreneurship
Published by:
London Business School
Version: July 2011
Length: 4 pages
Data source: Field research
Abstract
This is part of a case series. Disappointed by the failure of the previous agreement with Manfred Jaekel and Thomas Kroeger, Simon Cohen deliberated over his alternatives. A health scare had made Simon reconsider what he wanted from life, and he knew one thing for sure: he was not happy with the status quo, and he wanted to earn 100% of the return from his hard work. Tensions had been rising for some time, yet Simon did not want to lose his friendship with Manfred. One alternative was to sell Cargo Masters del Norte, to his partners or others, but he had personally sacrificed an enormous amount of energy and time to grow the Monterrey and Guadalajara offices. Did he really want to throw all that away and start again? Alternatively, he could try to buy out his partners. Perhaps an amicable split was the best that could be hoped for. Simon made a decision - he asked Manfred and Thomas to propose a price for either party's 50% stake in CMN. They could buy, or they could sell. In late September 2007, Manfred and Thomas proposed selling their stake in CMN to Simon and his family for $3.5 million. The Cohens had to decide how to respond.
About
Abstract
This is part of a case series. Disappointed by the failure of the previous agreement with Manfred Jaekel and Thomas Kroeger, Simon Cohen deliberated over his alternatives. A health scare had made Simon reconsider what he wanted from life, and he knew one thing for sure: he was not happy with the status quo, and he wanted to earn 100% of the return from his hard work. Tensions had been rising for some time, yet Simon did not want to lose his friendship with Manfred. One alternative was to sell Cargo Masters del Norte, to his partners or others, but he had personally sacrificed an enormous amount of energy and time to grow the Monterrey and Guadalajara offices. Did he really want to throw all that away and start again? Alternatively, he could try to buy out his partners. Perhaps an amicable split was the best that could be hoped for. Simon made a decision - he asked Manfred and Thomas to propose a price for either party's 50% stake in CMN. They could buy, or they could sell. In late September 2007, Manfred and Thomas proposed selling their stake in CMN to Simon and his family for $3.5 million. The Cohens had to decide how to respond.