Before I tell you the one thing you should never ever bring to an acquisition closing, I need to give you the background….
Company X was a successful company. Especially when you consider that on $3MM in revenue it spun off 30% in pre-tax profit. For over twenty years the owner, (we’ll call him Harold) ran and grew his business with savvy planning and shrewd decision-making.
Harold’s only son, (we’ll call him Donald) worked in the business and had spent time in each discipline as he was being groomed to take over when Harold was ready to pass the baton.
Best laid plans and all that.
Harold was hospitalized after being diagnosed with advanced cancer and 24 yr old Donald was put in charge.
Fast-forward five weeks and Harold is back in the office part-time while working through his radiation and chemo regimen.
(It is important to know that company x is a small, 10-person niche manufacturing business with long-standing employees)
Harold is in his office when five of his employees come in and shut the door. They say that they speak for rest and tell Harold that they will not work for Donald. Donald has been derogatory and denigrating to the ‘peons’ for years. They had laughed Junior off as they were treated wonderfully by Harold, generously paid, and received abundant benefits for their good work.
However, during Harold’s hospitalization, Donald’s attitude had sharply worsened and more importantly, was observed doing cocaine at work.
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