The Art of Negotiation Episode 2
In the second episode of "The Art of Negotiation," there's a tense situation where CEO Jae-sik wants $10 billion to sell part of his company, Sanin Group. To make progress, the team handling mergers and acquisitions sets up an important meeting with the head of the construction part of the company. They want to talk about his job contract and pay. However, the talks don't go well because the construction CEO doesn't want to work with them, causing the negotiations to stall.The team looks closely at the construction unit's performance and finds out that its low sales are due to a redevelopment project that has been on hold for years. This long-stalled project is a big problem for the $10 billion asking price. To fix this, the team visits the almost empty site and discovers that the only thing stopping the project from moving forward is an elderly woman who hasn't given her approval. Her consent is essential to restart the redevelopment.
In a meeting with their investment banker, Kang Sang-bae, the team realizes that selling the construction part of the company for $10 billion is nearly impossible. Despite this, they keep looking for buyers and find two potential ones. Chamok Engineering & Construction wants to get into residential construction after facing a setback, and BIUM D&I recently ended its partnership with another construction company. These two companies become the main focus as the team tries to make a successful sale.
Joo-no asks Dong-ju for help in getting Jae-sik to reconsider the high $10 billion price. Dong-ju points out that since Jae-sik announced this price publicly, it's tough to change it now. However, he suggests that if they handle it carefully, the CEO might still be willing to renegotiate the terms.
At the same time, Soon-young talks to his friend at the Ministry of Infrastructure about a possible policy change that would skip the need for resident approval for the redevelopment project. He argues that the building is in such bad shape that it needs this special exception. However, his friend warns that getting around the legal and policy rules without the needed support from lawmakers would be very difficult.
On the important day of bidding, Tae-su's team tries to sabotage the M&A team's office to disrupt their work. Amidst the confusion, as the team waits anxiously for the bids, someone from one of the potential buyers approaches Jin-su, trying to get insider information. Jin-su sees a $7 billion bid in the documents and quietly smiles. Meanwhile, expecting an $8 billion bid, Joo-no leaves the meeting to talk privately with the CEO of BIUM D&I. He subtly suggests she reconsider her offer. She initially proposes $7.5 billion but then adjusts her bid at the last moment.
The team finds out that the elderly woman stopping the redevelopment project never legally owned the apartment; it was owned by her late husband. Since they weren't legally married, her objections don't count legally. The vice president of the construction unit had kept this information secret to protect her from being forced out of her home. Meanwhile, Joo-no visits the grave of her husband nearby to pay his respects quietly.
During the bidding, BIUM D&I offers $7.9999 billion, and they sign an agreement. The contract allows for a price change if there are valid concerns.
Soon after, the construction unit’s CEO, who is friends with Tae-su, tells BIUM D&I about the redevelopment problem, and the company asks for a price reduction. Joo-no agrees but suggests a deal: if he fixes the redevelopment issue, the original price should be restored. The CEO of BIUM D&I agrees to this plan.
Joo-no carefully negotiates with the elderly woman and gets her approval for the redevelopment by promising to move her husband's grave to his hometown. This agreement helps Joo-no finalize the sale for an impressive $8.5 billion. Additionally, BIUM D&I uses this outcome to improve their public image by highlighting their role in helping the elderly woman with Joo-no's guidance.
When Jae-sik finds out about the successful $8.5 billion sale, he finally agrees to the deal.
During the celebration after the transfer, Tae-su takes full credit for the successful negotiation. Meanwhile, Joo-no's influence keeps growing; he had suggested promoting the vice president of the construction unit to CEO after the acquisition, and BIUM D&I follows his recommendation.
As the episode ends, Jae-sik becomes more worried about Joo-no's plan to recover the remaining $2.5 billion through buying other companies. In the final scene, Joo-no reaches out to someone to discuss a personal issue that seems related to his recent visit to the columbarium (a place where cremated remains are kept).
The Episode Review
This episode has a more straightforward story compared to the busy start of Episode 1, focusing on the important sale of the construction unit. The negotiation scenes are very interesting, and the clever moves between the parties make it more suspenseful, keeping us very curious.However, some parts of the show are still inconsistent. Jae-sik's continued hostility towards Joo-no seems forced, especially considering Joo-no's efforts to save Sanin Group. Although the series hints at past conflicts between them, a more detailed explanation would help make Jae-sik's opposition more believable. Hopefully, future episodes will shed light on this relationship and explain the tensions within the company better.