Robbery by Repurchase Rights – A Private Equity Story | Sklover Working Wisdom
"Once you give up integrity, the rest is a piece of cake." - J.R. Ewing, From the TV Series Dallas ACTUAL CASE HISTORY*: Kurt was intrigued. As a well-known and highly regarded Marketing Consultant to large automotive dealerships, he was presented with what seemed like a grand opportunity: to help build a national network of motorcycle dealerships, with the goal of "taking it public" in five years or so in an Initial Public Offering ("IPO.") The best part of the opportunity was his becoming an owner of 5% of the company, a potential reward of extraordinary value – perhaps in the many millions of dollars – if things went according to plan. To come on board, Kurt would have to leave a secure and long-term position with his firm. And, too, to come on board Kurt would have to take a significant cut in income for three or four years. But other things were quite enticing. First, the people putting the deal together were part of a highly