Chapter 17

After groveling for forgiveness and getting a hug from Mom, I got started on the afternoon chores. Supper was a simple, but tasty chicken and broccoli casserole. All of my uncles, aunts (except the only recently known to me, Rachel and my Aunt Heidi, who lived in California, so I don’t really know her well) and cousins were there. After dinner, Uncle Bo and Aunt June took their kids home and it was time to start the first of our family meetings tonight. Dad then set up the speakerphone and we called Granddad and started the meeting.

“First of all, Trudy and I had a wonderful time and can’t wait to get back in a couple of weeks. But now, we need to talk about business and a few other matters,” said Granddad’s voice. He then continued. “The first thing we have to discuss is that as of business close on Friday, I employed Aurora Security to have all the locks changed on both auto-related businesses. John will be at the body shop at seven AM to let employees in and the Auto Parts store at eight. We will provide new keys for management at the end of business that day after we determine which employees will be retained. This ensures that Blanton will not return to steal company assets, either in person or with the help of an accomplice still working there.

“Good,” I said.

“That was my only immediate concern,” added my dad.

“Okay, now that our immediate worries are settled, we have to determine the future for PASCO and what Steve’s and Lars’ roles will be. Tommy, have you decided what you want?”

“I want whatever Uncle Steve and Lars want. I would love to have them as partners, but not if they feel that they aren’t getting a fair deal,” I said.

“Does this position make sense to you, John?”

“It’s Tommy’s company, Dad. I can understand his concern for Steve and Lars, but like you, I think it would be an incredible opportunity for all three of them and an important learning opportunity for Tommy, and to a certain extent, Lars.”

“How do you feel about it, Steve?”

“Lars and I have talked and we think it is a great idea. We understand the potential risks and understand that Tommy, via John, will be our boss, at least for several years, but the opportunity to create something special and lasting is there.”

“Good. You all understand that right now, the valuation for your business Steve is three-hundred thousand dollars. Out of which, you have almost one hundred thousand dollars worth of debt. That debt is an asset in PASCO’s debt portfolio. PASCO, which is currently solely owned by Tommy, has a tentative valuation of about two point two million dollars. The reason the valuation is tentative is that the debt portfolio’s assets are not stable. Also, considering that almost half of the debt is also tied into the three business assets of PASCO and Steve’s company that would greatly reduce PASCO’s worth. When you measure that value of PASCO minus its corporate debt, it would be a bit more than one point six million dollars. Of course if Steve’s company is merged into PASCO, it would bring the company’s valuation back up to just shy of two million.”

Granddad continued. “If you do plan to fold Johansson Automotive Garage into PASCO, my advice would be for Tommy to forgive all debt to any of the corporate asset companies, including Steve’s. Then sell off the remaining debt portfolio. You probably won’t get a lot for it, but it is probably better off your books. Before you do this Tommy, you should probably sell the laundromat.”

I remember Granddad telling me this earlier, but I wanted to get his thinking out in the open for others to consider. “Why Granddad?”

“Well, I suppose you could keep it, but it doesn’t really suit your vision for the overall company, does it?”

“No.”

“Hmmm ... John, do you know what these young magnates are missing?”

“A Mission Statement?” asked Dad.

“Exactly. Tommy, Steve, and Lars. It’s one thing to have some related companies, but what are your expectations for your overall company? What kind of synergy between the companies of PASCO that will not only improve the bottom line but will have a positive impact on each business? Do you wish to formally incorporate? A mission statement for each company and for the larger entity will go a long way to determine if you can make a laundromat fit PASCO’s mission statement or not. As an outside observer, I can’t see a fit, but I do see an asset that if sold, could provide working capital for the businesses or perhaps one that Lars wants to start.” The money can also be used reduce the debt that is owed to your trust fund, Tommy.

“Then we should sell the laundromat,” said Tommy.

“You should, but that doesn’t get you out of your homework. Assuming you’re in, Steve...”

“I am,” my uncle interrupted.

“Then you need a mission statement, too.”

“I already have one,” he grinned.

“Let me hear it.”

“‘Providing the community with friendly service, with prompt and accurate work, at fair prices.’”

“Very nice,” said Granddad.

“Doesn’t sound like much of a slogan to me,” interjected Lars.

“Mission statements aren’t slogans for the public Lars. They’re used internally to help direct a company and ensure that it is moving in the right direction.” smiled Dad.

Uncle Steve nodded. “I learned about them in business school. It’s to remind me what I built the company for so that if I decide to make changes, I consult my Mission Statement to make sure that it doesn’t negatively impact my vision for the company,”

“Exactly. It doesn’t mean that Mission Statements can’t be amended or even completely changed, but those decisions must be given great thought before making such a change,” said Granddad’s voice. “Steve does joining PASCO suit your company’s mission statement?”

“I believe it does. It might make it possible to buy parts at a discount and get a faster turnaround than I did with Blanton or with some of my other vendors. That could allow speedier repairs for my customers and maybe even cheaper prices. All of these factors clearly fit my Mission Statement.”

“Good. This brings up an area I would like to discuss with Steve. Until the merger is complete, would you be willing to act as a consultant for PASCO so that we can identify problems at the body shop and the parts store? It will be a paying job.”

“I’d be happy to but this is a family business that I will be a part of. I don’t require any money.”

“Steve you should get paid for a couple of reasons. First of all, your time is a valuable commodity and your expertise and effort should be compensated. Secondly, Tommy could use it as a tax write off.”

“Okay. I can do that. First off, I would suggest re-hiring Chad Parker in his old position as Assistant Manager of the Body Shop. Remember, Blanton fired him when he took your side, Tommy. Furthermore, I’d suggest that you consider promoting him to Manager.”

“Is he capable? Loyalty should be rewarded but not if the man is not up to the job,” questioned Granddad

“Chad knows the industry, but he also knows that particular shop and how things work. Also, he could give some insight into the employees who work there. I could oversee him in a general manager capacity, if there are any concerns about him in the short term.”

“Tommy, what do you think?

I was kind of surprised that Granddad asked me and not my father. Then I realized that this could be some kind of test. He knew I had mixed feelings about Janie’s dad. I didn’t hate him like I did her mom and Blanton. He was a likable guy in fact, but he didn’t defend his daughters and he allowed an affair he knew about to continue under his own roof. Still, that should not impact his ability to do his job and he was a friend of Uncle Steve’s and had his recommendation.

“Okay, Uncle Steve. I trust your judgment and your logic. I’ll hire him back and you can determine his role. You and dad can see to that.”

“Okay, Tommy,” replied my uncle.

Then a thought occurred to me. “Granddad?”

“Yes, Tommy.”

“While I haven’t drafted my mission statement for PASCO yet, I have a bunch of words floating around in my head. None of those words are ‘Laundromat.’”

Granddad laughed over the speaker and everybody in the room chuckled.

“Okay, Grandson, so I assume you want your dad and I to find a buyer?”

“Yes. I also want to go to the body shop and parts store when Dad and Uncle Steve introduce themselves as the new owners.”

“Splendid idea, Tommy. I think I know your thinking, Grandson.”

“Me too, Dad. People at both locations will assume that Tommy is just a kid along for the ride with his dad and uncle. That will give him a chance to look around and see what’s going on and how he’s treated,” observed Dad.

“Got it in one, Dad,” I grinned, while using one of my dad’s favorite expressions.

My father smiled at me. “As far as the Laundromat, your grandfather and I anticipated your decision and have been making discreet inquires. We have a few possible buyers lined up, pending your approval. We’ve told them that the business is debt free because we will retire the debt. I also told them that any interested party must make two bids. One with and one without the old equipment. We would give preference to the best bid for the Laundromat and the old equipment, but could decide on a better bid for just the Laundromat.”

“Great. What about the rest of the debt portfolio, Granddad? How would that be handled if we sold it?” I asked.

“I can liquidate it by either selling the remainder of the portfolio once we have separated the PASCO debt assets that we will retire or offer the local businesses a chance to buy back their debt at a lower cost than what they actually owe. It may go a long way to establishing some good will in the community. For those businesses not interested, I can sell what’s left or failing that, hold on to the remaining debt as an asset for PASCO.”

A few more details were discussed before the business meeting broke up. I felt good about what was accomplished and was really excited that the adults of the family treated me like an adult. Once Uncle Steve and Lars left, my mom and grandparents joined the meeting. Then the possibly more uncomfortable family meeting started. Now, it was just me, Mom, Dad, Grandpa and Grandma along with the Philly family. It went surprisingly better than I thought it would. The only real sore point had been about Rachel, who we were all meeting for the first time via telephone.