The joint-negotiation exercise is appropriate for pursuing some or all of the following teaching objectives: Exercise valuation skills: The case affords opportunities for valuation based on discounted cash flow, comparable transaction multiples, and current market prices. Also included are such valuation details as options and contingent interests, operating synergies, gains from horizontal expansion, and the need to satisfy various stakeholders. Exercise bargaining skills: The two sides come to the exercise differently endowed. The case contains asymmetries in expectations, bargaining strengths, and goals. In this environment, the teams are rewarded for thinking carefully about how to approach and deal with their counterparties. * Illustrate practical concerns about mergers and acquisitions: Additional questions the buyers and sellers face include setting the exchange ratio of shares, tax exposure, dilution, and voting power.