Insider Trading (Buying a Construction Company)
I wrote an article on BizQuest a while ago, and the response
has been gratifying. Apparently others have conversations with their spouses
that end with, “You should try to make more money… Dear.” I think they go to a
special school someplace to learn how to say “Dear” and “Fine.”
INSIDERS
The clients generated from the article tend to be “Insiders”
and have these general characteristics:
- Construction professionals, so they know the business
- Have a structure in mind
- Buying from their boss or the family
- NEED HELP WITH THE FINE POINTS OF THE BUSINESS DEAL
CONSULTING
For years I have resisted retainers and relied on success
fees. It just makes me feel better when my compensation is based on getting
something done. Plus, just about all of my serious negotiations have included a
money-back guarantee—if you decide that I did not do what I said I would do, you get your
money back.
If you are an insider buying a construction company, you
need a limited service. It is not fair to pay me a percentage of the deal. You
just want some advice and help about the deal points, and it is not legal or
accounting advice. Nor is it advice about the construction business—you already
know that.
WHAT IS A FAIR PRICE
FOR THAT SERVICE?
As Shakespeare wrote, “Aye, there’s the rub.” But I think I
have it figured out if we follow this guideline—You will be happy with the fee.
Let us start with that motto and go from there. If my advice is worth “not
much,” the fee should be commensurate.
So, here is what I propose: let me give you some thoughts, a
Confidentiality Agreement and perhaps an example. No charge for a review of the
existing financials and the existing Letter of Intent or whatever you have. I
will let you know what I think needs to be done and an estimated cost, and my
daily fee is $1,500 per day. You decide how to move forward, and we will part
with favorable mutual respect. I guarantee it.
