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Almost in business, until...

Discussion in 'Off Topic [BG]' started by Wesley R, May 9, 2005.


  1. Wesley R

    Wesley R Supporting Member

    Here is the skinny; I was working on being business partners with a guy who needed the cash, my credibility within the industry and business connections for more work. I needed his "established" business (even though it was not above water) for a quick start.
    After jumping through multiple hoops with the variouse finance folks (getting a second mortgage and a line of credit) I am due to close in two weeks. The guy backs out (tonight via email). I do not know if it is a negotiation tactic for more 4 (that won't happen, he already is getting a huge % of goodwill money) and I am tapped.
    Sad night at the household, I think I will dig out the old guild and boom around the bedroom for while.
    The business advisor that was guiding us through the process is kinda bummed also.


    Thanks for listening,
    Wesley R.
     
  2. Petebass

    Petebass

    Dec 22, 2002
    QLD Australia
    That's too bad. What sort of business was it?
     
  3. Wesley R

    Wesley R Supporting Member

    Voice, data and video cabling. underground cable or whats calle Outside Plant. Some of it is still under a confidentiality agreement so I can't reveal the plans.
    It would have been coll having an office again, with a spare amp and bass.
    It could have grown and would have employed20-30 more people then are currently employed.
    Oh well I gotta believe it is for the best.

    Thanks For Asking,
    Wesley R.
     
  4. Wesley R

    Wesley R Supporting Member

    Cisco data guys, server router types. Had a couple of letters of intention.

    Wesley R.
     
  5. Petebass

    Petebass

    Dec 22, 2002
    QLD Australia
    FWIW, I'm an Accountant by day. I see lots of business partnerships that do well but I also see too many that break down because one of the partners is a turd. Now I don't know this guy at all but it sure sounds like you may have been setting yourself up with a turd. Maybe it was for the best.
     
  6. Wesley R

    Wesley R Supporting Member

    were have the books redone, they were a mess. Helped establish what his loaded labor really is. It's amazing that some contractors do not know this or what it costs per day to have the doors open.
    We were about to make him whole with the IRS on some witholding that didn't get covered (sheesh) and partially whole with som vendors. He has ticked off a couple of manufacturers reps and I spent 20 hours playing peace maker with him and the reps. Know I will pop for a few lunches, swallow some pride and give them a you were right speech. O h well life goes on.

    Best of Luck,
    Wesley R.
     
  7. MJ5150

    MJ5150 Terrific Twister

    Apr 12, 2001
    Lacey, WA
    Sorry to hear about this. After reading these comments above, his actions do not surprise me. Hopefully, you weren't all that surprised either.

    -Mike
     
  8. Munjibunga

    Munjibunga Total Hyper-Elite Member Gold Supporting Member

    May 6, 2000
    San Diego (when not at Groom Lake)
    Independent Contractor to Bass San Diego
    Or it could have tanked. That's why, when we acquire companies, we buy assets and the people we want. Goodwill, schmoodwill. How much is he paying you for contingent liability?
     
  9. Wesley R

    Wesley R Supporting Member

    Munjibunga,
    It could have tanked, The morning brings new hope. The price for full ownership started at X, as real numbers started to reveal themselves 1/2 X was more realistic and the investors pulled out, so it would be a go on my own deal. In close to final or what was to be final, the value jumped to 2.5X.
    I will find out more today, but I am moving on and if this was a negotiation tactic, it failed.

    Best of Luck,
    Wesley R.
     
  10. Wesley R

    Wesley R Supporting Member

    on. The new guy can contribute what I need and hopefully I can deliver what he needs/wants (more money). We have 'Agreed in principal" and believe things will work out.
    If this new venture works, I might just reward myself with a Lakland Skyline. This is out of character for me as my preferences have always been for a much older sound. I do love the way the ones I tried feel.
    The ex-almost partner called a couple weeks later. We are at the no hard feelings stage and I wish him well.

    Thanks for listening.

    Wesley R.