Page 134 of It's Not PMS, It's You
Everyone else watched me eagerly, intrigued looks on their faces.
All except for Mason.
You have their full attention. Keep going. Knock ‘em dead.
“As we all know, sometimes having the right product is not enough. That’s why our company exists. We find undervalued companies with superior products, but inferior management or marketing skills. We buy them at a fraction of what they’re worth, then gut them and sell the good pieces for a profit. This business model has worked well for us.”
I took the cap off the pen and wrote on the white board, “Rebuild It and They Will Stay.”
I placed the pen on the ledge and turned back around, glancing at my notes on the table. “But what if we tried a new approach? What if, instead of tearing apart a company, we rebuilt it? It sounds a lot more positive, now doesn’t it?”
Some people nodded.
“It also sounds like a lot more work,” Gary said.
A few others nodded at his comment, agreeing with him.
I expected pushback, but I wasn’t finished yet.
“Unless you know what you’re doing,” I corrected Gary. “With my idea, we return to the roots of our company, consulting. There’s no overhead since we’re not technically acquiring the company, which means we have a bigger profit margin plus additional future revenue from owning shares in the company as part of the deal. The company we help will recover from its doldrums and nobody loses their jobs.”
Gary sat forward in his chair. “Give us an example.”
I smiled. “I would be glad to.”
Nick is going to love it when he finds out this will help his cousin, Jay.
I grabbed the pen again and wrote on the board, “Mathors Aerospace” and stuck the cap back on and placed the pen on the ledge of the white board.
“Mathors Aerospace is a company on the cutting edge of technology. They design unmanned drones that are able to carry emergency medical supplies to remote locations. They have a hundred other patents and are waiting for FAA clearance to move forward with many of them. But while they wait, they’re bleeding money. Normally, we would go into a company like this, get rid of the broken pieces, keep what’s working, and resell the company for a profit. We could make ten million dollars on the deal without batting an eye. But Mathors Aerospace is missing out on the big picture, and so are we. What if, instead of ten million dollars, we madea hundredmillion dollars? Ten times more.”
“Now you have my attention,” Gary said, as laughter filled the room. “How exactly do we do that?”
“It’s simple. Mathors Aerospace needs to use the existing patents they already own with products they already sell instead of creating brand new products that need approval and FAA clearance. They would be updating, not building from scratch. The commercial drone market should reach twenty-five billion dollars in the next five years and the biggest downside to drones is the downtime for recharging. Mathors Aerospace has a patent for a drone battery that recharges itself using the air that keeps it up in the first place. Imagine that? A drone that doesn’t need to stop to recharge? Imagine long distance drone flights? We can help them move in this direction without any money out of our pockets and I know exactly how to do it.”
I smiled, proud of my idea. I had never been more excited about my job and taking it in another direction. I wasn’t tearing something apart. I was building something.
Just like Nick.
Gary nodded, thinking about it. “Very interesting. Thoughts everyone?”
Not a surprise that Mason was the first to raise his hand.
Gary pointed. “Yes, Mason.”
Mason turned to me. “We have evolved into something bigger and better since the beginning when Gary had started this company. Returning to our roots is like taking a step back.”
I crossed my arms. “I disagree. It’s a matter of implementing a new plan that—”
“We already have a proven plan that works. What guarantees can you give that we can make ten times more money?”
“I have the numbers to show that the market—”
“Market factors can change the course of a company,” Mason interrupted again. “For instance, you can tell Mathors Aerospace to market their drones to Europe, but then Europe can outlaw the same drones. Where will the earnings come from then?”
“That’s highly unlikely and the additional income comes from sales of shares that we acquire from the company. Essentially, we would be part owners.”
“They could offer us a million shares or ten million, for that matter, but what if the stock market takes a dump and those shares are suddenly worth pennies now?”
