Learnings

How to think of an hostile acquisition

Chris Labs

Back in the days, Felix Dennis was offered to sell his business to Ziff Publishing and to, together conquer, the European Market. Felix declined the offer, teamed up with VNU to fight Ziff back, it took them everything, 2 years of profit were burned in making sure Ziff’s venture was a failure. Ziff finally gave up after losing millions of dollars. Looking back, does Felix thinks it was worth it? No. Absolutely not. It was stupid. Glorious, but stupid. I would have listened more closely to Phil and Bill. I would have negotiated my balss off. I would have become … Continue reading How to think of an hostile acquisition

Being CEO

Don’t offer shares in the business to employees.

Chris Labs

Ownership isn’t important, it’s the ONLY thing. Risk equals reward. “An honest day’s work for an honest day’s pay” is not risk-taking. If you work in my business, I’ll pay you fairly, try to make it a great place to work in, incentivize you if it makes sense for the company to do so, contribute to your pension, perhaps contribute to your health care and the health care of your family, teach you to grow your skills and thereby improve your personal net worth, ensure you have paidvacations, ensure you are not bullied or in any way discriminated against, and … Continue reading Don’t offer shares in the business to employees.

Learnings

You have a partner? Remember to include The Mexican Shootout

Chris Labs

In the Articles of Association of a company, both sides agree to insert a clause that governs serious disputes. If the dispute cannot be resolved, then the following takes place: Each side in the dispute, each shareholder who wishes to participate, considers carefully what they would be willing to pay for the whole company. It doesn’t matter how many shares they own, but they must have access to the sum they have indicated, less the worth of their own shares valued on an equal basis. The parties then go to a neutral layer or professional on a certain day and … Continue reading You have a partner? Remember to include The Mexican Shootout

Learnings

Do not mistake serious negotiations with management bargaining.

Chris Labs

They require very different skills. Let’s say an employee wishes to deposit and collect their child from school each day. This will interfere with his/her “normal” working hours. Big deal. If the employee is important to you, you will probably bend over barckward to “negotiate” a solution. If they are not, you will probably enforce the letter of law (and fire them). Whatever you decide to do, you are not involved in “negotiating” – you are problem solving. -How to get rich, p.150 Continue reading Do not mistake serious negotiations with management bargaining.