Chapter 28

I was aware that Jake was plotting something with Eric and Buzz, and even had some idea that it likely involved that forty acres I owned over in Anaheim Hills. I decided to just wait them out, figuring they couldn't really do anything about the property without first going through me. I was also pleased to see Jake starting to take over a leadership role within the family.

Whatever the boys might have been plotting, it was delayed after Willy killed himself. Later, when my father had his fatal heart attack, no one wanted to talk about business anyway.

It was 1999 before all four boys came to me, and made an offer to buy out my ownership in the company. Frank, the youngest, was already twenty five years old.

Though all four were woefully short on ready cash, they more than made up for this lack, by having enough balls for a whole pride of young lions. The one thing I really did like was the way Jake had structured their ownership of the business. Eric was to have 27%, Jake would get 26%, Buzz would have 24%, and Frank would have the remaining 23%.

Jake was valuing my business, including all the land I still owned, at fifteen million dollars. That was what they were offering to pay me. Of course, their plan was for me to finance the entire purchase price, and commit to loaning the company whatever money it took to develop all the property I now owned.

In spite of how they planned to divide the ownership among themselves, it was very clear, right from the start, that Jake would be the man in charge, if the boys took over the company. I was aware that this was the only way the company could continue as a profitable endeavor.

Jake had the overall savvy to run the company. None of the others did. Since Frank had never worked a single day for the company, I was at something of a loss to understand why he had been included. I found out that Jake had insisted Frank be included, figuring, correctly, that I'd want all four of them involved, if I was going to turn everything over to them.

Jake knew me pretty well. He was smart enough to figure out that I knew he was the only one who could run the company, among the four of them. He also somehow knew that I wanted to keep the company owned by the family, and as a going concern.

"I could sell off that land in Anaheim Hills, for about what you're offering me for the whole company."

"You could, Pop, but you won't. We need to go ahead and do this, if you want to have the company still operating after you retire. Jake can take your place, and he's the only one of us who could. Buzz and I would own the controlling interest together, in case Jake did something stupid, like get back together with Diane."

That was a long speech for Eric to make. I was surprised that he even understood why Jake had structured ownership the way he had. I was proud that the boys had done so much thinking about how to protect what they believed was their vested interest in the company.

"What about Zinat? What is she supposed to be getting out of all this?"

"We already talked to Zinat about this. We talked to Mom and Aunt Sonia too. We all agree that you can use all your money, after we get the business paid off, for them. Part of this deal would be like we were getting our inheritance from you guys a little early."

All four boys were smiling when Eric told me this. They seemed to think it was funny, and that they already had all the answers to any questions I'd be asking.

"Why would I let you all use my money to earn the profits to pay me half the going market value for my company? I might let myself be talked into selling the four of you half the company, for fifteen million, and then letting you pay me for that, out of half the profits we make developing those properties. I'd be the CEO, and Jake would be my chief operating officer."

I knew, in the beginning, they'd have to have someone standing by in an oversight role, taking care of any disagreements they would be having. I also wanted all four of them to spend the next five or six years building up some sweat equity in the company. I knew they'd place more value in their ownership if it didn't come to them so easily. Once they had paid for their fifty per cent, we could put a plan in place for them to buy out the remaining fifty per cent.

I also wanted a few more years to work with the boys, especially Frank, who'd never before shown even the slightest inclination towards working in the family business. Frank had managed to get himself through two years of junior college, and had spent the last four years, since turning twenty one, trying, mostly unsuccessfully, to sell real estate. I'd used him, a few times, to make offers on land I was interested in purchasing, but hadn't been impressed with his knowledge, enthusiasm, or follow through. Frank was a pleasant enough young man, but not one I'd ever call a self starter.

Frank had been spoiled by Sonia. He usually got whatever he asked for, without having to do anything at all to deserve it. All of our older children had been brought up with a much stronger work ethic. I blamed myself for not being more assertive with Sonia, back when Frank was young enough for it to have made a difference. Perhaps, if I had a few years to mentor him, I could remedy some of the problems I saw with how he approached life.

My meeting with the four boys ended without either side agreeing to anything. I sensed all four were somewhat surprised and discouraged that I hadn't given them everything they were asking for.

Over the next few months, I conducted my business the same as usual. I continued building houses on the property I'd already picked up, purchased more finished lots to build on later, and quietly went around investigating what my costs would be for grading and developing the Anaheim Hills property for a future subdivision. I was still undecided about how many lots I wanted to build. I finally had the engineers survey it, and draw up tentative maps for a 102 lot subdivision, and a 128 lot subdivision.

All during this time, Jake kept working for the other builder, and none of the other boys broached the subject of buying me out again. I finally decided they planned to out wait me on this matter. It wasn't that poor of a plan, because I already realized that I'd have to start taking some steps pretty quickly, if I wanted to ensure the continuity of my business.

When my mother got sick in early 2000, I took some time off from all my planning, to tend to other family business. Her death, on top of my father's death, had really brought home to me the fact that I really needed to have some family succession plans in place.

Curiously, Dorothy, Sonia, and Zinat had never mentioned one word to me about knowing and approving of the boys plans for taking over the business.

My sister Nancy ended up providing most of the terminal care for my mother. The rest of the family visited nearly every day, but it was Nancy who spent almost every minute with Mom, until she passed away.

After my mother died, I gave Frank the listing on her house. Nobody in the family wanted any of the clothes or furniture, so all of it got donated to the Goodwill. I forced Frank to take care of all aspects of getting the house ready for sale. I let him hire crews to repaint the house, and do cosmetic repairs. I sent in one of my crews to check everything out, and make any other necessary repairs. There wasn't that much, because my father had taken pretty good care of things when he was alive.

The house sold for $340,000.00. As usual, Frank didn't bother working the listing that much, and another agent ended up making the sale, and splitting Frank's commission. It took Frank a lot longer than it should have to get the house ready for resale, and his broker told him to raise the asking price by an additional fifteen thousand dollars, by the time he got it ready to show to potential buyers. Frank thought he deserved to keep the extra money we got, since we'd originally agreed to list it for $325,000.00. I set him straight on that account.

"Dad, now that Grandma is gone, don't you think we all need to sit down again and talk about what you're going to do with the business?"

Jake had obviously gotten Eric to open up the negotiations again. There were about twenty of us over at my house, eating dinner, and trying to make some plans for Thanksgiving and Christmas. For the first time in anyone's memory, Dorothy and Sonia decided that they didn't want to host either of those Holiday feasts. We had finally roped Zinat into doing Thanksgiving, and Eric's wife, Helen, into hosting our Christmas get together.

Dorothy was almost sixty four, and Sonia was sixty one. They had taken over hosting Christmas and Thanksgiving from my Mom, right after we moved into the new house in 1973. My mother had been in her late fifties by then, and everyone had agreed that all the cooking and baking, plus the house cleaning was too much to keep asking of her. Now, Dorothy and Sonia were ready to get away from all that work as well. One more reminder, if we ever needed another, that old age was beginning to set in.