Sent: November 2, 4:23 p.m.
From: Stan, CEO, Stan the Man Movers
To: Exec. Team Partners
Subject: Valuation & Offer
Guys,
The valuation came back today from Princeling Partners, and it looks exactly like what we’ve been hunting for $25M plus shares in the new company. So, we all benefit greatly. I think it’s the right time to go ahead and get serious about this.
See the attached and let’s discuss in our meeting on Friday.
STM (Stan the Man)
Sent: November 6, 2:00 p.m.
From: Stan, CEO, Stan the Man Movers
To: Exec. Team Partners
Subject: Meeting Outcome
Guys,
Well, that meeting didn’t go as we planned, but let’s all pull together and come to a consensus on this. I know some of you are afraid of selling, but let’s talk about it. I gave you all shares in the business years ago so we could all benefit from an event like this—I really don’t understand what the hesitation is.
Friday huddle to work it out. I’ll go with the group, but let’s be reasonable about this. I don’t want to have to point out that I have 43 percent of all the shares!
Just kidding. Let’s talk on Friday.
Sent: November 10, 12:10 p.m.
From: Stan, CEO, Stan the Man Movers
To: Exec. Team Partners
Subject: Decision
Guys,
I think we can all agree that that was a horrible meeting. However, we finally got a consensus that we’ll move ahead with Princeling Partners to represent us in going to market. I’ll get the formal engagement moving forward.
STM
Sent: November 10, 12:27 p.m.
From: Joanie, CFO
To: CEO; Exec. Team Partners
Subject: RE: Decision
STM,
I think I speak for everyone in saying that we were disappointed that you forced us to agree to sell. We are happy with the current company and the outcomes. It seems foolish to want to sell now, just when we’re doing so well. While we will forever be grateful for your generosity in giving us our original shares, we also want what’s best for the business and all of its employees, which is why we agreed to explore options.
Joanie, CFO
Sent: November 22, 1:56 p.m.
From: Stan, CEO, Stan the Man Movers
To: Exec. Team Partners
Subject: Letter of Intent
Guys,
Really happy to share that we have a great first letter of intent from a terrific partner that I’m really excited about. As the point man for this, I’ll keep you all informed. I’ve created a private shared drive for all the materials, so you’re all kept in the loop as partners. First step is the financial review, so Joanie will be instrumental in making this happen!
STM
Sent: November 23, 10:05 a.m.
From: Joanie, CFO
To: CEO; Exec. Team Partners
Subject: RE: Letter of Intent
Team,
Just a reminder: I’ll be out over the Thanksgiving holiday, and since I have a ton of PTO that I haven’t used, I’m going to go ahead and take off till the first of the year to use it up. You’ll be fine with Sandy, our controller, although I wouldn’t involve her in the sale stuff—you know how she can gossip!
Happy holidays, everyone!
Sent: November 23, 10:44 a.m.
From: Stan, CEO, Stan the Man Movers
To: Joanie, CFO
Subject: Vacation
Joanie,
Please come talk with me about this vacation you are taking. We need you as a part of the team to walk them through our financials.
STM
PHONE CALL TO PRINCELING PARTNERS:
STM: Hey, guys, Joanie is going to be out till the first of the year. Is there a way we can postpone the review?
Princeling: Nope. Did you know this?
STM: Well, she says she told me, but I sure don’t remember it. Sandy, our controller, can do it, but she’s likely to spill the beans. I guess I could do it if that works? I know where most of it is.
Princeling: Well, that will have to work for now. I hope that nothing comes up that we don’t know about.
Sent: December 16, 3:32 p.m.
From: Stan, CEO, Stan the Man Movers
To: Exec. Team Partners
Subject: Review Update
Guys,
We are only about a third of the way through the review as I’m winging it without Joanie. For whatever reason, a lot of the records we need are missing or misfiled. I guess she implemented a new filing system in November that no one understands. The buyer is getting a little anxious about this, so I’m wondering if one of you could help me. I really want to project strength and competence among the partners, so who’s in?
STM
Sent: December 17, 2:08 p.m.
From: Steven, CTO
To: CEO; Exec. Team
Subject: RE: Review Update
STM,
I know this is something you really want, Stan, but I have to say I’m still having doubts. Maybe Joanie being out is a sign that this isn’t the right time. We can do what these buyers want us to do, so how about we pull it off the market and give it a go ourselves? I think I speak for the rest of the team when I say this.
Steven
Sent: December 17, 2:11 p.m.
From: Exec. Team
To: CEO; Exec. Team Partners
Subject: RE: RE: Review Update
Ditto—hey, we finally agree on something!
LET’S GET REAL
Trying to get two people to agree on something is difficult. Dealing with multiple partners can be excruciating. So, begin with the end in mind. BEFORE you offer partnerships with active, voting shares to anyone in your company, spell out the rules of the road, such as who gets to make the big decisions about when and to whom to sell the business—let alone for how much.
If you’re already in a partnership that is less than cordial, time to fix it before you decide to sell. Get a mediator, get a lawyer, or get anyone else to help the two of you duke it out about the rules of partnership. You might consider a shotgun clause: if you offer to buy out your partner for any amount and they say no, they can buy you out for the same amount. This prevents people from making frivolous offers.
Most business partnerships are entered into with about as much thought as going to the pound and picking out a dog. At least a dog is trainable and usually does what you say—a partner is another breed altogether. A business partnership is messy and trying to sell with partnerships can become akin to the War of the Roses. Start the partnership with some simple rules in place, and the war will likely be more of a skirmish than the mother of all battles.
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