Negotiating Equity Split at Updown: Post Negotiation Assignment

Team number: 1 Name: Roll No:

Role Played: Michael Reich

Names of co-negotiators with roles played:

The outcome of the negotiation:

Change in the Phuc Salary Seed equity split Founders’ Equity Any other
founders’ equity P/M/G to Warren agreements
split(M-G-P)
44.75-27.25-26.5 $80000 25-37.5-37.5 1.5% The 0.5%
increase for
Warren’s Equity
is split evenly by
Michael & Georg.

Individual Scores:

Founder's
Issue 1 Equity -10
Equity for
Issue 4 Warren -8
Issue 2 Salary for Phuc -6
Issue 3 Seed Equity -25
  Total -49

Self- Assessment

1. What I did well:

I think on my part, not giving up major equity from the revised equity share was a major win
as that was one of the major concerns for Michael.
2. What I could have done better:
As the three characters have to work with each other and engage among themselves majorly
in order to make UpDown a success, I tried making sure that everybody at the end of the
negotiation walked a happy man but, I am not very sure if they were content or happy.
3. On a scale of 1 to 10, what is my feeling of happiness in today’s negotiations?
9
4. On a scale of 1 to 10, what is my feeling of trust in my co-founders?
9
5. On a scale of 1 to 10, what is my perception of commitment on the part of my co-founders?
8.5

Peer Assessment:

1. What they did well: (Please mention the roles they played when you give a description)
 I think Georg did well when he was negotiating for Warren’s share in the FE. Both Phuc and
Michael were reluctant to give anymore than 1% to Warren. However, when Georg pitched
that Michael and himself could pitch for that share, it didn’t take much to convince Phuc for
this Idea as he got to keep his equity intact.
Both Phuc and Georg were reasonable and actively listened to Michael’s concerns. They
both looked like they wanted to go through with this and genuinely cared about working for
the idea.
2. What they could have done better:
They could have stretched Michael a bit more on the Equity. Though they both valued
Michael’s contribution for the business, there was still some scope on equity.

Overall observation: Overall the negotiation went pretty decently. All the people actively listened to
tried to reason each other’s concerns. It was a very Civil discussion.

What we as a team could have done better: We as a team could have talked more about any further
revisions in the equity in the long term and on what basis.

Please note: Your detailed description will help analyse how the deal was made/not made and
why. So be as unbiased as possible when you describe the behaviour/strategies and moves made
by your co-negotiators. Remember that they will be commenting on your behaviour as well.