The Boy on Top
As such things are not my area of expertise, I have but one comment. Is it just me, or does reading about a "sub" on a blog named "Boy on Top" have sexual connotations? Cheers...
Ha! I wish, it would make such negotiations far more interesting... TB
Wow, you're a smart guy. I have no idea what you're talking about...really! Business is not my thing, it's surprising, actually that I have this job which is a mix of business and science. I get science, I like science, but selling? buying? marketing? The finer points of those aspects leave me in the dust!!
I guess (upon re-reading) it sounds like you need to play politics, keep everyone happy, but don't be too soft...
Exactament! If there is one thing I know, its that I'm not a smart guy. Believe it or not, my original degree was in theoretical mathematics. I fully intended to become an academic, then got blinded by a bit of money, ended in business and found I liked it. Go figure... TB
I am but a lowly English teacher with no head for business - you're on your own here..but I shall raise a glass to you this weekend and say toast to your successful decision. I am sure you'll find a satisfactory solution.
Have a good one.
Ha, I've seen your brain think, nothing lowly about it. Oh, I'm making this work as I always do, but its fun to see what ideas people come up with. TB
If we assume that the deal has to get done, then you have ideally to persuade Peter, but in such a way that he will sell it to his boss. To do that you have to take him out for a drink and paint a word picture of the Terrible Problems (new IT, fire half the management, external regulatory issues, I don't know what's plausible) that will have to be solved for the sub to give him a good service and make his life easy, and Just How Incompetent you company will be at solving them and How Great the purchaser will be at least in comparison. So the new owner is his white knight. It shouldn't be that hard to blind him with science?
Start off as "I'm your mate, and I'm sure you realise all this stuff as you've been closer to this sub than me, but just so's to make sure we're on the same page". You can reserve the jackboot for later if necesssary.
If of course you're seen as just the CFO's stooge, you might have to recruit someone else to put the message over.
ARE they fair market rates? It would help you persuade him if you can knock a bit off here and there, and SURELY that's what the purchaser is expecting ie theirs is a negotiating stance (or have you already done that bit?) Even better if you can knock off bits that will turn out to save more money than the purchaser expects, because of volumes or something, although you will need to be careful about reps & warranties. And if you get HIM to suggest those bits, even if the amount of money is fairly trivial, it will make him feel clever and have something to show his boss ("we're under the CFO's cosh but look I made it a bit less bad").
If there is not at least a reasonable amount of truth in this story, then you shouldn't be selling the sub anyhow. I was involved in the sale (much againts my will) of a very major service sub in the same sort of circs, and it was a disaster, because (a) the interests of the purchaser post-sale lay in leveraging off the brand to create a market illusion of them now being a major player rather than in actually sorting all the problems and (b)they had underestimated the problems, and tended to believe the management in place too much (ie they weren't as clever as we hoped they were) Couple of years after the sale, we were convinced that the ex-sub and new parent were just using income from us to further their other business lines, and their other clients (who of course were in the same industry as us so we talked) were convinced that we got enormously favourable treatment.......
So if you don't really believe the story, you might warn the CFO that selling it (the story, not the sub!) too hard might backfire on him.
Insightful, as always. Have tried the "don't sell" tack, but it falls on deaf ears. I think the sale can still be salvaged to be a net benefit to the business. Service levels were based on shouting, not value, and from my past experience of the buy they will try to make it better. My PP is coming round, but its using every ounce of my skill not to be seen as the CFO's "stooge"... TB
I think jackboots - but possibly only lightly shined ones - if the CFO wants it, surely no-one can argue about it? If Peter knows that he has to do the sale, then unless he is he the kind of person who would deliberately sabotage it and then jump ship, he's got to suck it up and get on with it. So in that case, he's just prevaricating and perhaps a stiff talking to will move him on?
Perhaps a stiff talking to that includes some jackboot-type rhetoric directed at the purchasers of the company to massage Peter's ego - "once they've bought, we can re-negotiate (presumably the contract with them isn't forever?) - all their business will be with us at least initially, so we will be able to push their rates down if we threaten to go elsewhere".
*removes Machiavelli hat and sits down*
No renegotiation on this one, though PP thinks that will be the case. This will have a nice tight iron clad contract of service. Lightly shined jack boots, like that! TB
I think that my sage advice comes with a price? Are you going to set up a paypal account so you can give your blogger advisers a cut?
hee hee
I should be charging you lot for the highly effective b-school case studies I'm presenting... 
TB
"Once they've bought we can renegotiate". i bet the contract is for at least 5 years and possibly up to 10, subject only to the buyer themselves changing ownership or major major service default.
Sorry, Clarissa, I undercut you, we should have got together earlier. I wouldn't like anyone to think my advice is so cheap it must be valueless. I'll have a new recipe please.
Spot on, though I've managed to influence the sale enough to be somewhat shorter than your estimates... TB
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