My thoughts on Micheal Scott Paper Company
The Office has become a kind of phenomenon in the past few years. It's been trending in the top 10 shows for months now. Its probably one of the best deals Netflix made.
I know people who play it in the background while working.
There might be some spoilers ahead, but the show went off-air seven years ago!
In season 5, Micheal Scott quits his job and decides to start his own business called Micheal Scott Paper Company(MSPC). His primary strategy is to steal clients from his old company Dunder Mifflin(DM). There are some hiccups along the way, but in just a month, Micheal manages to get a large chunk of DM's clients. In fact, he makes enough damage to get the company's CFO's attention. CFO, David Wallace, drives down to Dunder Mifflin Scranton's office to find a resolution and stop this bleeding of DM's profitable clientele. After consulting with the Scranton branch's top salesmen, they decide to buyout MSPC. Both parties get into a room and talk numbers. David's first offer was for $12,000 to buyout Micheal Scott Paper Company, which is immediately rejected, citing it was "insultingly low." The second offer was for $60,000. This got the Micheal and team excited. $60,000 for a month's work is not bad at all! But on second thought, Micheal decides that they need jobs, not a one-time payment. They need money coming in every month. What follows is one of the best negotiations of Micheal's life. He manages to convince David to give Micheal, Pam (former Dunder Mifflin receptionist), and Ryan Howard(former vice-president at Dunder Mifflin and recent bowling alley employee) their jobs back. He even demands that Pam starts as a salesperson instead of a receptionist. David agrees to all the terms of the negotiation, and both parties leave the room satisfied. Of course, Micheal Scott paper company was broke as they were selling their products at a much lower price point than their competitors. David, even offering to buyout MSPC, was a godsend. Good for Micheal!
But this got me wondering, what is the fair value of Micheal Scott Paper Company? Did David jumped the gun and overpaid? Or is he the brilliant CFO that bought great assets at a low price?
David Wallace(left)
Micheal Scott Paper Company
I'll try to value Micheal Scott Paper Company and estimate how much David Wallace agreed to pay in the next one ✌🏻