What’s go­ing through their heads

Financial Planning - - Brodeski -

Founder’s View

I’ve been gen­er­ous with em­ploy­ees, pay­ing above mar­ket com­pen­sa­tion while I took the risk.

My suc­ces­sors are lucky for the op­por­tu­nity to buy the com­pany that I built from scratch.

Of course, my suc­ces­sor(s) should pay me full mar­ket value for the firm. It’s cap­i­tal­ism.

The suc­ces­sor(s) should be happy to bor­row money from a bank to pay me FMV. They need to take risk like I did.

If my suc­ces­sor(s) don’t want to pay me fairly for my eq­uity, I’ll sell the com­pany to an out­side buyer.

Suc­ces­sor’s View

I’ve made less money here than I could have else­where on the prom­ise of even­tu­ally own­ing the firm.

The founder needs to fi­nally share in the spoils since I am re­spon­si­ble for his suc­cess.

If the founder wants me to buy the firm, she should loan me money and sell at a dis­count.

I have a mort­gage, kids’ tuition and would like a sec­ond home like the founder. I can’t af­ford a lot of risk.

I won’t work for the firm if the founder sells ex­ter­nally. I will set up shop and take my clients for free.

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