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“Biggest Decision” update…more help requested…
I’ll begin with thank you for all the advice that you’ve already given. All of it made me ask the right questions at the meeting about the sale today. Since you were all somewhat instrumental in the helping me to comprehend the process from the outside, I would humbly ask that you add a bit more to my pool of understanding.
So, the meeting today was peaches and cream with respect to the many questions that I had about this sale. We (my attorney, my accountant and myself) are now completely certain that my “consultancy” will be external of all business ties after 90 days. During that 90 days my only responsibility will be to help a migratory staff adjust to the business model and to help guide the new management in the most effective direction concerning upgrades and integration of new tools into the current system. I am not, and will not be expected to physically be on site on a daily basis and the necessity to work the full contractual obligation will be at the discretion of the new management. So, that’s a relief.
Next, we covered the non-compete and why (very, very specifically) it was not being expected in this case. Both my lawyer and theirs apparently agree that their business model of the new management would not be in direct conflict with each other according to their assessed directives and therefore would not be required. Furthermore, the buyer has apparently purchased at least one other studio somewhere in the USA and found that one’s career can not be compromised as part of such an arrangement. In other words, my investment in education, the industry and lack of means with which to generate money for my family otherwise would in effect be null and void in most US courts anyway. They simply felt that a gentleman’s handshake was a fair enough bond and the potential for legal backlash did not merit the cost needed to enforce such a judgment should I ever decide to work in this market again. Besides, they unlike most people I’ve met, admit that the competitive nature of our industry is one of the reasons that it has defied common financial prognostications and what makes it such a blast to be in.
Finally, I did find that their underlying motive is not directly congruent with the ideology of buying a business like mine based solely on its success, but instead on its good credit, recognized name and reputation for meeting the needs of its clientele for many years
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21 Replies
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Michael,
I detect some resistance to the deal deep down inside.
Only you can answer faithfully what your inner voice is telling you.
If the deal is not adverse to your ability to generate future work, stay employed, pay all your current expenses, overhead and mortgage and leave alittle left over for personal items than it sounds like it will work.
However if you will feel lost without the daily grind of working every day at a place you created and nutured then this lost may not be worth the rewards.
Ultimately you have to trust yourself and even more the buyers. If you have the slightest amount of mistrust or doubt then don’t do the deal or discuss your concerns and get them out on the table.
I wish you the best of luck.
Tony Salgado
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What’s going to happen to your staff? Does your reluctance have anything to do with them?
and… what if the buyer googles you and finds this discussion on the COW?
— Bob C
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That very interesting Bob because I was thinking the same idea.
It can be quite a problem to discuss private matters on a public forum unless you protect the names of the guilty and innocent persons or parties involved.
In anycase Michael is making a major decision in his life and it most likely is beneficial for him to get it all out in the open before he does something he might regret long term.
Afterall he could always claim somebody else hijacked his computer and assumed his COW identity. Would this then be the first case of Cow identity fraud???
Tony Salgado
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Michael,
After 2000, we actually paired things down…then in 2002 we paired them down some more…December 1st, my partner and I split and I’m back to being a one-man shop.
It’s a little different, but I’ve known several Advertising/Media types who built huge businesses, then realized (sometimes after the enterprise’s demise) that it wasn’t what they enjoyed…or what they’re good at.
I’ve moved into some higher end projects and am working with some far less stressful clients now. I’m fighting the urge to grow like crazy. I’ll concentrate on surrounding myself with the gear I need and do less projects. So far I’m liking it…
TimK,
Kolb Productions,
Creative Cow Host,
Author/Trainer
http://www.focalpress.com
http://www.classondemand.net -
[tony salgado] “Only you can answer faithfully what your inner voice is telling you.”
Tony, if I did half of what that voice said I’d be in a straight jacket…but joking aside, I obviously have some hesitation simply based on the fact that certainty is no longer a certainty. I guess my instincts are to complete the deal, but there is a kid inside telling me not to follow through.
Tough questions, tough answers.
Thanks
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[Bob Cole] “What’s going to happen to your staff?”
My staff has been relegated to just three employees, so the plan to pay them sovereigns pay is only fair. It’s not great, but they’re aware of the possibility. Like many people who love what they do, these guys are sticking it out right down to the wire. In fact, one of them asked how much it would cost to transfer the business to him. A very thoughtful gesture, but not feasible.
As for the buyer doing a bit of research and the possibility, however unlikely that they buyer would shift their MO this late in the game would be a lot of time wasted on both our parts. Besides, if they read this and decide that they do want to back-out
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[tony salgado] “he could always claim somebody else hijacked his computer and assumed his COW identity”
That is highly unlikely…but I’ll keep that one in my notes, ha, ha, ha…
Michael Munkittrick
Gainesville, Florida USA -
Great words of wisdom tim, as always. That is actually the main focus for me at this point. Do I cash-out and vegitate or do I button down and sail this ship forward? The offer is very good, the terms are legitimate and fair, so the undecided question is more about my love o the work
Good luck on your adventure and I’ll let you know what goes on.
Thanks so much…
Michael Munkittrick
Gainesville, Florida USA -
Follow your insticts… they’re rarely wrong.
If you didn’t want to sell, you wouldn’t have gone this far into the process. Do the deal. Then, step back and think about the next chapter.
Just my .02 cents.
Mark
PS, thanks for a rare glimpse inside what is usually a private, confidential process.
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[Tim Kolb] “I’m fighting the urge to grow like crazy. I’ll concentrate on surrounding myself with the gear I need and do less projects. So far I’m liking it…”
When I grow up, Timmie, I wanna be just like you. ;o)
Once again, you toss a grenade as an understated offhand remark that jumps off the page the way that everyone leans in to hear when someone whispers.
;o)
I know many people here in the Cow who make good money and know their limits and who work within the context of the equipment they have and NEED. Conversely, I know others who never make any money and are always buying more and more stuff; thinking that they need that next big thing before they can be in the position to make themselves “real” or something…
There are people in this site who have old Media 100s and Avids that are a decade old and are still making money from them. It’s what you do with the tool, not the tool itself, that determines if you are a pro or an amateur.
Thanks for the visit with commonsense, Tim.
Best always,
Ron Lindeboom
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