Francis Henry, a seasoned entrepreneur and negotiator, was engaged by Rob Dale, the second-largest partner of Serenibis, a Colorado cannabis retailer, to facilitate the buyout of Serenibis and help launch a new company. Yet, in August 2020, only four months after coming onboard (as Covid lockdowns were sweeping the country), Henry found himself at an impasse. Negotiations with Gavin James, an early investor in Serenibis with veto-power over company decisions, and Rob Dale unexpectedly turned hostile at a dinner meeting. James stormed out of the restaurant because he felt the proposed buyout terms unfairly undervalued his share. James’ sudden turn derailed what was supposed to be a smooth sale process, one Henry knew four of the partners fully endorsed. Henry had a history as a successful broker in the cannabis space and signed up to be the broker knowing the deal would be challenging: it involved multiple stakeholders, complex financial arrangements, and significant regulatory hurdles. Henry also took on the job because it was an opportunity for him to rebuild his reputation after some recent setbacks, including a high-profile fallout with a former business partner. Henry had stepped up because he believed it was the perfect scenario to leverage his deep industry knowledge, negotiation skills, and strategic thinking. The stakes were high, as was the potential for a significant win that could restore his standing in the industry. Yet, after four months of work, the meeting had gone completely off the rails. Henry needed to strategize how to get the negotiations back on track and close the deal. The A case describes the negotiations led by Francis Henry in the context of a complex regulatory environment. The B case describes the implementation of the deal, the outcomes in relation to the changing cannabis market, and the perspectives of parties involved in the negotiations. Also see: OB114B: Conducting the Symphony (B): Post Negotiation Execution Challenges
