Agreed. I sold some equity to a current partner. In retrospect, way too cheaply. I should have sold it to him at a reasonable price and let him buy into the rest as he could afford it.
On Sun, Aug 23, 2020 at 11:38 AM Chuck McCown <[email protected]> wrote: > If they put skin in the game. Big no to gifting equity. > > Sent from my iPhone > > On Aug 23, 2020, at 7:45 AM, Lewis Bergman <[email protected]> > wrote: > > > ESOP isn't a compromise. It is a group of employees willing to risk what > they have for what they want. I would rather sell to e employee's than > anyone else. > > On Sun, Aug 23, 2020 at 7:09 AM Mark Radabaugh <[email protected]> wrote: > >> Or do the compromise between you and Matt - the ESOP where the employees >> end up owning it. You get nearly the same money out and they eventually >> get the same deal - if they can keep it going and build it. It’s harder >> because you have to figure out how to both get it to cash out and build at >> the same time. >> >> Mark >> >> On Aug 23, 2020, at 7:59 AM, Lewis Bergman <[email protected]> >> wrote: >> >> This isn't the feel good kumbaya that might be popular, but I'll say this >> on the subject of division of profits: >> I started my WISP by myself. All of you who started with your own >> checkbook and sweat know what that took. My family sacrificed as I worked >> massive hours. I did everything from accounting to server builds >> maintenance to installs and tech support. All while I was making about 1/3 >> of minimum wage while I did it. We lived off my wife's school teacher >> salary. >> >> I did that for a pretty short time as we had some early success and after >> a couple of years I started hiring people. By the time I sold I did what I >> wanted when I wanted. The people I hired I paid better than average hourly >> wages for the job and gave bonuses paying them for their work as they did >> it. I never asked any of them to sacrifice like I did nor did they offer. >> >> I took all the risk. If we failed I was the one in financial ruin. They >> could all walk away inconvenienced but fairly unscathed while I was >> personally liable for all company credit cards, vendor payments, carrier >> contracts, etc. >> >> And of course you can tell where this is going. Myself and the other >> shareholders kept every dime and I sleep fine at night. I worked to help >> get all the best employees jobs. Sure some were angry because they somehow >> felt they deserved something. Those were also the same employees I could >> have and probably should have already gotten rid of as they were problem >> children. Risk and reward. I took the risk, I get the reward. You want >> rewards? Take the risk. >> >> I did give a few people bonuses, help setup two in related businesses >> without loans (funneled business their way) but it was not any kind of % or >> really all that significant.I did that because they had been good people >> first, hard workers second, and last but not least, made my life easier >> when we were doing our thing. >> >> I am a capitlist and make no apologies for it. >> >> On Sun, Aug 23, 2020 at 6:16 AM Matt Hoppes < >> [email protected]> wrote: >> >>> Now that I think about it - I wonder if my plan of C would be a way to >>> reduce income taxes too on the amount received? >>> >>> Either by funneling the money through the company and paying the >>> employees or having the buying company write a check to each of the key >>> employees. >>> >>> I’m not sure which would yield better results for everyone. >>> >>> The way I look at it though - I don’t have hard partners. That often >>> leads to problems. But everyone who sticks with the company and especially >>> if they make a career out of it should be compensated nicely - both each >>> year out of proceeds they helped make as well as out of a major sale if it >>> ever happens. >>> >>> If anyone here has ever worked for a company where the owner sold and >>> got 2 million and you had worked there for 10 years building it up —— well, >>> how did you feel? Slap in the face. >>> -- >>> AF mailing list >>> [email protected] >>> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >>> >> >> >> -- >> Lewis Bergman >> 325-439-0533 Cell >> -- >> AF mailing list >> [email protected] >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> >> >> -- >> AF mailing list >> [email protected] >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> > > > -- > Lewis Bergman > 325-439-0533 Cell > -- > AF mailing list > [email protected] > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > -- > AF mailing list > [email protected] > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > -- Lewis Bergman 325-439-0533 Cell
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