Chapter 8

The next day Becca immersed herself into the business. Her personality meshed well with the French employees. She had taken two years of French in high school and two years of conversational French in community college, so she could converse with the other employees well. She kept her eyes open and listened. After the first day she had a basis to build an understanding of the ins and outs of the division's inner workings. She started to take on more of the day-to-day tasks that bogged down any CEO.

Carl was pleasantly surprised that she took to the business so quickly. She seemed to put her troubles behind her and he had to pull her out of the office in the evening. She genuinely made an effort to learn about the inner workings of the division.

By the end of the fifth day, she was talking with the employees and assisting with the paper work and asking intelligent questions and occasionally offering suggestions.

One evening about three weeks after Becca had started working in the office, Carl was in his office trying to catch up on work that Smith had let slid. All of the employees had gone home and he was going over a request for venture capital for a start-up to manufacture microprocessors for cell phone and game hardware. The business plan also outlined plans to bring out a state-of -the-art hand-held computer with Internet capabilities. The proposal looked very shaky without French government subsidies. He was about to put the proposal aside when Becca walked in and sat down.

"I looked that proposal over when it came in. Are you going to back it?" she asked.

He shook his head, "Too shaky. They don't have enough capital backing them, the competition is intense and one other backer has put up some minor funds, probably hoping that I would kick in the lion's share of the money and take most of the risk. They feel the deal is too shaky also. I think this deal is best left undone."

She leaned forward, "I have been thinking about this deal all day. I agree that it is high risk. What if you build the factory, asking the French government to give you a low or no interest construction loan? They want to get more manufacturing in the country because of the high unemployment. If the French will give you a construction loan, you build the factory and offer to defer the lease payments for the first three years. After the third anniversary of the lease inception, lease payments will start with a payment plan to include the deferred lease payments. The new company will snap up a deal like this. It will give them a chance to get the venture off the ground. Insist that they raise more capital to purchase to machinery for cash from the new funds. The chip making machinery is high dollar. Write into the deal that if the company folds within the first three years, the machinery becomes the property of the landlord, which is you, to cover the unpaid lease payments. If the company does fold, you have a billion dollar chip factory to use or sell. You would probably be able to buy any new technologies they have developed in those three years for pennies on the dollar. If the company succeeds you make a nice return for yourself on the French governments money. I think your exposure would be minimal.

"Why should they accept a deal like that," he smiled.

His mind was working at a furious pace. Maybe he had underestimated her. The plan was good, although he would never accept a plan like this one.

"Come on, Carl. You know as well as I do, that after the dot.com meltdown, venture capital has pretty much dried up. People are giving major positions in the company to get capital. I know that you don't like to own companies unless you own the whole thing, so this deal suites you, you won't be asking for a position in the new startup and the French will like that. The French probably wouldn't want you to own a piece of the company if they are going help you build the building anyway. I think that if you can pull your side together, they'll snap it up and think they have a bargain. The only problem with this deal is time. Chip technology has a very short shelf life. If you can't get all of your ducks in a row fast, the deal won't be workable.

He hesitated before he answered, "Do you think you could pull this together? I'll give you all of the resources you need. I have contacts with the French government, so I can pave the way a little. It's going to be a hard sell with the French. They aren't stupid. They'll want to talk this thing to death. You have to control the meetings with them. Just remember what you said. It has to be done fast. Do you want the project?

She stared into his eyes trying to see if he was serious, "Yes, I want to do this."

Carl picked up the phone. He knew that the chauffeur was waiting outside the building. He ordered him to bring dinner to the office so that they could work in the office for a while longer. He knew Marie would be furious because he had promised to take both of the women to dinner. Marie was getting to be a problem. She was becoming jealous of Becca and took every occasion to make snide remarks or to belittle her. They ate dinner in the office and worked on fleshing out the proposal and trying to anticipate any objections the French or the start-up would have to their proposal.