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Ok guys, here it is. I had a 3 hour meeting with a new Biodiesel company yesterday. They want to form a merger with my company. They have offered a lump sum of cash [just under 500k], and a sizeable amount of stock in the new company, and want me to head up the research and development division.
My 2 partners want to take the offer, but I own controlling interest in our company, and I'm not to sure.
I like being the "boss", and being able to work with customers One on One, but this new company is global in it's approch, and the CEO has a very good track record for making $$$$$$$$$$$$. He just sold a start-up company that he started with nothing, and after 18 monts sold it for 450 MILLION $$$$$$$$$
I'm just not sure I want to be a "small" part of a large company, or remain a "large" part of a small company!
Any thoughts?
FABMANDELUX.
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Oregon Chapter Leader My friends call me Don.
"I always keep a supply of stimulants handy in case I see a snake, which I also keep handy" WC Fields
Well, tough decision- you can make a lot of money, and forget the customers. Or you can keep happy customers with a moderate cash flow. However, if you can somehow ensure that the new guy will keep up with customer relations as they are now, you can make money, and still be satisfied in knowing that your customers are taken care of. How's that sound?
__________________ Danny PAA member #12
SoCal Chapter Member
E99 F-350 Dually Van turbo 4x4 CC LB 7.3L, AFE intake, 3 gauge pillar, 4" Magnaflow SS str8-pipe, DP Tuner, Swamps 175/146 SS inj, ARP head and bottom studs, Comp 910 springs, ITP Ovrbst, CCV mod, SS HPX, home made Reg-return, Foil Del, ZooDad, Air Horns 320hp/704tq
That is the porpetual perdicament of the successful small businessman.
All I can say is that the marketing expertise and supply advantage you get from being affiliated with a large company are definite pluses. Just be sure your employment contract gives you good security because some of these big companies buy small potential competitors with promises of senior management positions then "ease the new guy out the door" in a couple of years.
Being the owner of a small business is exciting and allows you a lot of latitude in which direction you take your company. It also places the success or failure of the business squarely on your shoulders. If you feel comfortable with that challenge and with your knowledge of business administration, not the "how or what to do" of the business you are in but the basics of how to do business, then I would say the biodiesel business is just getting started and there is plenty of room for entrepenurial spirit and selling now might be a little early.
Like I said before its the age old quandry.
BTW have you read my last post about glycerol? There is somthing there that might interest you, considering your motto.
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2006 F350 4X4 Crew Cab King Ranch edition strictly factory, for now.
What do you want to do with your life?.... What makes you happy?...
Is there a golden parachute if you don the deal and you need or want out?
Sorry for more questions than answers.
__________________
95 F350 SC PSD Auto 4.10 Pro-Tech Aluminum Flatbed with side boxes AutoMeter Transmission and Boost gauges 6637 Filter mod 160K miles B&M 24K Transmission cooler Diamond Eye stainless steel exhaust 2 tank WVO
Do you have any of your processors or equipment patented? This could be a cheap way for him to buy or obtain the rights to your systems.
If that's all they wanted they could get it right off this forum. Fab has shared pretty much everything with us every step of the way.
I think half a mil is a pretty good return on the investment...and a big chunk of shares as well as a department head position suggests to me that they are more interest in the person than the equipment.
I guess what it boils down to is why did Fab start his company, and will the merger help or hinder that objective.
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Scott
His: 01 F-250 Lariat, 7.3, ZF-6, NV271. A few mods
Hers: 06 Freestar SEL 4.2l
79 Bronco Ranger XLT.. used be the driver, now waiting to become the project.
96 Grand Marquis LS... 25 mpg commuter
If that's all they wanted they could get it right off this forum. Fab has shared pretty much everything with us every step of the way.
I think half a mil is a pretty good return on the investment...and a big chunk of shares as well as a department head position suggests to me that they are more interest in the person than the equipment.
I guess what it boils down to is why did Fab start his company, and will the merger help or hinder that objective.
I think I have to agree with you Scott. You almost have had to be there. They more or less said they wanted me and my ideas, and buying my small company was a way of giving my partners some cash.
They have basically the same thoughts as I do, smaller plants, community based fuel supplies, seeing American farmers prosper. A lot of these mega-plants are doomed to fail, the economics are just not there.
They are already talking with potential customers from around the world, and they loved my plans for a self-contained 250,000-500,000 gallon/year plant [like the portable plant I'm building for USDA] that could be "dropped" into small villages, where it would increase their standared of living.
My lawyer called me yesterday and told me that these guys have a good track record, and could find no complants about their dealings with others.
I don't have to make a deal right away, and will do a whole lot more "soul-searching" to see if the "fit" is right for me, and I thank everybody for their input. This site is like a brotherhood to me and I value what you guys think more than you will ever know. Thanks guys................as always
FABMANDELUX.
P.S. Yes Phydeax I checked out the link you posted I do use explosives in my gold mining, but even I'm not crazy enough to mess with that
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Oregon Chapter Leader My friends call me Don.
"I always keep a supply of stimulants handy in case I see a snake, which I also keep handy" WC Fields
Assuming that your new job will still allow you to share your expertise here I'm all for it....otherwise, you should pass on the deal.
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Scott
His: 01 F-250 Lariat, 7.3, ZF-6, NV271. A few mods
Hers: 06 Freestar SEL 4.2l
79 Bronco Ranger XLT.. used be the driver, now waiting to become the project.
96 Grand Marquis LS... 25 mpg commuter
Assuming that your new job will still allow you to share your expertise here I'm all for it....otherwise, you should pass on the deal.
"No worrys Mate" What I do commercially has nothing to do with what I do here. The plants I design are much larger than what a "home-brewer" would want or need, even tho there much smaller than the "doomed" mega-plants.
As this technology advances we all need to share our thoughts and ideas, so that all can benefit. Besides anyone that knows me, knows that I can't keep my big mouth shut
FABMANDELUX.
__________________
Oregon Chapter Leader My friends call me Don.
"I always keep a supply of stimulants handy in case I see a snake, which I also keep handy" WC Fields
Fab, go ahead and do the deed. Give them your "Personage" but put a sunset on the agreement.
You may see another opportunity in this vocation in the near future.
I don't think you've been talking to any Legal guys' yet, (From reading this post) but I would certainly follow up on the idea of not selling your rights to anything patentable.
I think Diesel is in our future.
Bio-diesel and Algae-Diesel both are viable alternatives that will almost eclipse the Hydrogen market.
You want to give this buyer his moneys worth, and tell him he's getting you cheap. So its only gonna be for a short while, until he gets on his feet in the business.
Then you go on to something else. (Because that's what you enjoy in your life! I can tell by reading your posts)
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97 F-150/4X4/ex cab/4.6V-8/auto/Lariat,F/Glass canopy and a 77 F-150/460/C-6/ex-cab/Fglass Canopy.
Fab, go ahead and do the deed. Give them your "Personage" but put a sunset on the agreement.
You may see another opportunity in this vocation in the near future.
I don't think you've been talking to any Legal guys' yet, (From reading this post) but I would certainly follow up on the idea of not selling your rights to anything patentable.
I think Diesel is in our future.
Bio-diesel and Algae-Diesel both are viable alternatives that will almost eclipse the Hydrogen market.
You want to give this buyer his moneys worth, and tell him he's getting you cheap. So its only gonna be for a short while, until he gets on his feet in the business.
Then you go on to something else. (Because that's what you enjoy in your life! I can tell by reading your posts)
Your right, without new challenges I get bored easy. I have talked to an attorney[ my wife works for one!] and my partner and I have a meeting this Friday with the 4 partners of the new company. As for a "sunset" clause, their plain is to build the new business up to be a major world wide player, then sell it and go on to something new.
In the 3-5 years it will take to do this, I'll be ready to retire [ again ] and get on with building hot-rods, my first love!
FABMANDELUX.
__________________
Oregon Chapter Leader My friends call me Don.
"I always keep a supply of stimulants handy in case I see a snake, which I also keep handy" WC Fields
In the 3-5 years it will take to do this, I'll be ready to retire [ again ] and get on with building hot-rods, my first love!
Somebody call Boyd Cottington and tell him he's about to have some competition.
__________________
Scott
His: 01 F-250 Lariat, 7.3, ZF-6, NV271. A few mods
Hers: 06 Freestar SEL 4.2l
79 Bronco Ranger XLT.. used be the driver, now waiting to become the project.
96 Grand Marquis LS... 25 mpg commuter
Somebody call Boyd Cottington and tell him he's about to have some competition.
FABMANDELUX.
__________________
Oregon Chapter Leader My friends call me Don.
"I always keep a supply of stimulants handy in case I see a snake, which I also keep handy" WC Fields
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I do use explosives in my gold mining, but even I'm not crazy enough to mess with that
What I do commercially has nothing to do with what I do here. The plants I design are much larger than what a "home-brewer" would want or need, even tho there much smaller than the "doomed" mega-plants. 
