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"Umbrella Negotiating" – Best Response to Private Equity "Hurricane Tactics" | Sklover Working Wisdom
"I am no longer afraid of the storms for I am learning how to sail my ship." - Louisa May Alcott ACTUAL CASE HISTORIES: Kalisha, 44, had worked for six years as the Financial Controller of a St. Louis-based, family-owned lighting distributor. After three generations of family ownership, during which the staff grew from two to 150, the grandchildren-owners received an inquiry from a Private Equity firm about their interest in possibly purchasing the company. With assurances that each grandchild would likely make many millions of dollars when, three to five years later, the "re-invigorated" company was to be sold. It didn't take long: they decided to "cash out." Pretty soon, the Private Equity firm, their lawyers and their accountants began reviewing the company's financial records, bank statements, leases, employment agreements, all as part of their "due diligence," upon which their formal "offer" would be based. It did not surprise anyone when the company's owners called for a