Today I forced myself to get in the game I had no choice. I had an important meeting to discuss the yearbook financial picture with Tom and my brother Bob. I asked Bob to get involved to get his feedback. When it comes to financial statements and financing options Bob is an idiot savant.
Prior to my noon meeting I spoke with Al. His training was going well until his last bike ride and knee trouble came up. He's still feeling really good about his training and doesn't feel as scared. Al told me that Justin is following the program I gave him 100% and he is now down 25lbs and even signed up with a community fund spot for the NYC Ironman. He's drank the Ironman Cool-aid.
The conference call with Tom lasted about 2 hours. It was excellent. Bob got a good picture and asked some questions and made some suggestions I wouldn't have. I did find out more about their current financial picture and share structure. They have an existing shareholders that invested about $4 million into the business and now the business is not worth anything. A new investor wanting to invest in the yearbook division will not care about the other shareholders past investment, he's only interested in paying for the current value of the business and rightly so.
It became apparent that we will need $1.5 million and will probably have to give up 70% of the company. Before we can sell the prospectus, Tom is going to have to prepare a current balance sheet. He hasn't had an accountant do a year end financial statement since 2007. That's one thing I didn't realize. Bob also made a good point where the projections need to include interest repayment and Bob also thought our numbers looked too good and should massage to be worse.
As I was listening to the conversation and realizing I'd own such a little amount of this business and have a board and partners to report to I started to really sour on it. I could do better financially with AG and not have the same level of work and responsibility.
When the call ended Bob and I talked and Bob also suggested that I stay with AG. He felt that the yearbook business plan was excellent however the upside of owning and cashing in shares would not net out me any more money than if I stayed with AG. He also thought that Tom and his group haven't made money in 10 years and they need me to come on board as I have a successful background of running a business with the perception of making good money for a lot of years.
Al is telling me the same thing, stay at AG and ride the train. I know, Al knows and Bob knows that AG will eventually want to reduce my compensation and we all agree get what you can while you can and then ride it down. The reduction will still be respectable. Now the big thing is to pick my time to tell Tom that I'm not interested and have changed my mind. I think Tom probably has bigger problems with his existing shareholder group having to lose almost all their investment and telling them they would only own about 10% of the new yearbook company.
I finally got off the phone after talking with Tom and Bob around 2 pm. My plan for the day was to go to Kelso and try my new wetsuit in the lake. I've never been to Kelso and was impressed with the little beach. I don't know what it is but it's always the immigrant families that seem to take the most advantage of provincial parks. When I got back I told Alice we need to go there and I'll bring a portable barbecue.
The swim was revealing. The large wetsuit is too large and I was getting some rubbing at the back of my lats. It's a sleeveless suit and something seems to be rubbing between the suit and my tri suit underneath. I only did 20 minutes, I didn't want to cause anymore chaffing. It's a bummer, I wanted to do more for the $6.25 it cost me to get into the park. The water was warm and other than some of the weeds in the water it was a nice swim. They have a long buoy line and you swim back and forth. I used my garmin under my swim cap and it worked well. If the distance is accurate I had a great swim at 1:43 per km. I doubt it's accurate the swim seemed to easy to be that fast.
When I got out of the water I felt like I was having a mind out of body experience. It lasted for the drive home and part of the night. I think it's from all the beer I've been drinking and then swimming made me a little light headed.
The rest of the night was drinking a Slurpee, having some M & M peanuts and trying to fix my new used refrigerator. I plugged it in and the freezer was working and the bottom fridge wasn't getting cold. I did a lot of Internet searching on what the problem could be. The last thing I wanted to do was call a repairman, they charge $50 just to show up and look at it.
On the Myrtle Beach front I got named my price and got a car company to rent me a car for $15 per day, normal was $30. Then I also realized that I can go to more than two destinations from Niagara International Airport with Spirit Airlines. I didn't realized that they have connection flights. Doh. I also learnt that Fort Lauderdale is only 30 miles north of Miami. Doh. They have direct flights to Myrtle beach and Miami. From there we can connect to the Virgin Islands or Bahamas or take a cruise. Now that I found out about Spirit, the Ultra Low Cost Airline, weekends look like they can be more fun.
Mod Swim - 20:43 / 1190 meters
2 comments:
Wow, sounds like you were trying to jump onto a sinking ship with that yearbook deal???? Tread lightly on that one buddy.
Did you body glide with the wetsuit first?
Sucks you are having so many wetsuit issues, did the sleeveless at least get rid of the claustrophobic issues?
M, yeah we'll see how it plays out. No I didn't glide. I should try that.
B
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