Chapter 4

The ownership of Olsen's had found that Joel's sick religion had permeated the company and aided its slide toward oblivion. They were nice gentlemen but I told them I was not interested in pulling their investment chestnut out of the fire. I asked them what they wanted for the company today in cash. When they told me, I laughed. I pulled out some paperwork I had put together on Olsen months ago when I established a valuation of half that amount at that time. I said the company had lost more value since then. I also asked them how much they were willing to invest further to fix some of the cash issues the company had while its operations were repaired. They were horrified because they weren't willing to kick in any more money as operating capital.

Finally, I said, "Gentlemen, I understand your pain and your desire. Unfortunately, reality cannot align with your desire without a considerable additional investment. A talented manager must have some capital with which to operate. Olsen's has none. The cash is almost gone, the receivables are questionable, the inventory is depleted, and the payables are large and overdue. I made you an offer through my lawyers back then that you refused. My offer would be smaller now if I would even make one. I know for a fact that you have lost two of the three exclusive lines that were keeping you going. I suspect the third company will be canceling their exclusive soon. The shell has lost so much value as to be worthless. If I bought the company, I would change the name to trade on the reputation that my wife and I have built over the last year." I sat back and waited.

The two men looked at each other. Finally, one of them said, "We don't have authority to sell at even your prior price. I don't know if we can get it."

I said, "I don't know that I'm interested at any price. My primary interest was for equipment my other company needed. Since Olsen's has lost those two exclusive lines, we can purchase what we need without Olsen's in the picture. I have enough to do without taking on a new challenge of that magnitude.

"However, if you want to make me an offer to purchase Olsen's considerably lower than my prior offer backed by audited statements that show some legitimate value, I would have to take it seriously."

I had nothing further to offer nor did they so they left after we shook hands.

Pam came into my office. Frankie was sleeping in her office. "Would you really be willing to buy it?"

"Pam, I don't know. I agreed to entertain such an offer. Also, we are representatives for those two lines and I have rented warehouse space on a piece of CME property for storing inventory for CME and for other customers in the area. It would be easy to combine what they have with those lines and develop a viable company.

"However, I am not making any marketing effort right now. If I'm going to get serious, I will have to hire a salesperson, a warehouse person, and someone to handle the office work."

She said, "Okay. I guess I need to dream up a name and a logo then." She grinned and I grinned back.

It was good that she did. I had an offer to buy Olsen's the middle of next week. It was supported with financials, a copy of the current unaudited financials, and a copy of the bank statement.

I took it all home to show to Lisa. She said, "I can tell you're interested but how will you run it?"

"I have an idea but you won't be happy about it."

"Tell me all about it."

"Okay. First, the area doesn't need another steel supplier. I want to be a specialty supplier. The inventory there is very low and I would sell that off at cost." She nodded. "I would remake the company into an industrial controls seller with the ability to build and service control equipment. Pam says to name it, Chambers Industrial Controls. We would get the property. It's close enough to help with CME's inventory issues. CIC wouldn't need much of the land."

She said, "Okay. What's the part that I won't like?"

"I want Mitch to run it. He may want that new guy working for Janet and want Melody. I would give him a piece of the action as an incentive because it will be a risk. Pam will run his marketing and I will lend what time and assistance that I can. I figure to give him enough money to operate for a year. By then, he should be on his way if it's going to work at all."

"You're right. I don't like that. He's one of my sharp ones and is a great leader. On the other hand, if he is willing, I will not get in his way. When are you going to spring all this on everyone?"

"Tomorrow, I will respond to the offer. It's fair so I won't bargain other than to hurry the closing. The sooner we close, the easier it will be to get the new company going. It will be an asset sale with CIC taking on the liabilities. That lets us control the way things will go."

"Okay, but you may not entice Mitch until you have a deal. If it falls through, there are other ways for me to applaud his good work. CME is starting to expand into that area some. You will have to joint venture with us since you will have my main guy for controls."

She smiled fiendishly. "You will owe me for this. I will take it out on your naked body."

I murmured, "Oh, I hope so!" I leaned in and kissed her. She met me half way. We wore each other out that night sleeping sated.

The purchase went off smoothly and Mitch and Melody were thrilled with the new opportunity. Lisa required Mitch find a new project manager and I required Melody to find her replacement.

While doing that, Lisa and I discussed Pam. We increased her salary and made her a vice president of C and C. I wanted her smarts to be with us and available. Frank was doing very well with Marv and would be a partner in the next year. I wanted Pam to continue to work and would try to keep her happy.

The day after the closing, Mitch, Melody, and I went over to Olsen's. There were only two employees left. One was an older man who was a laborer. The other was a younger woman who was trying to answer the phones even when she had nothing to tell people.

The man met us as we drove up in my car. He came up and said, "May I help you?"

I held out my hand and said, "I'm Al Chambers."

"I'm Ted Allen."

"It's good to meet you, Ted. I closed on the purchase of the company yesterday afternoon. You now work for Chambers Industrial Controls and Mitchell Morris is going to be the new boss. He's one of the owners, too."

Mitch said, "Ted, call me, Mitch. It's good to be here. We're going to make this work. Let's go into the office. Please come with us."

The four of us went into the office. Ted said loudly, "Stephanie, we have company."

A skinny, harried woman came from an office area. I said, "Good morning, ma'am. I'm Al Chambers. This is Mitchell Morris and Melody Morris. We're the new owners here."

She straightened self-consciously. "Mister Chambers, I'm Stephanie Landers. I guess I'm your other employee."

I smiled at her and tried to encompass Ted. Mitch spoke up. "Actually, you'll be working for Melody who was at one of Al's other companies. I come from still another. The new name is Chambers Industrial Controls."