Supplement | HBS Case Collection | July 2008 (Revised November 2012)

UpDown: Confidential Instructions for MICHAEL

by Noam Wasserman and Deepak Malhotra


Michael Reich is having severe doubts about how he split the equity with his co-founders two months ago, when they completed a one-page "November Agreement." Since then, Michael has found an angel investor and has worked non-stop on the business, while one co-founder was off enjoying the winter break with his family and the other worked on lucrative consulting contracts for other companies. Michael has just sent his co-founders a proposal that would re-allocate the equity within their founding team, and all three founders are getting ready to reopen a negotiation they thought had been finalized.

Keywords: Negotiation Participants; Agreements and Arrangements; Business Startups; Ownership Stake;


Wasserman, Noam, and Deepak Malhotra. "UpDown: Confidential Instructions for MICHAEL." Harvard Business School Supplement 809-021, July 2008. (Revised November 2012.)