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Thread: Well, I did it!

  1. #1
    God/dess Zofia's Avatar
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    Default Well, I did it!

    I took a deep breath and signed on the dotted line. I am now the majority owner and President of my own company! Yes, we're small a $4.5 million a year machine shop/tool maker. They say buy on bad news, sell on good. Well, I bought on bad news. I purchased the company in bankruptcy. My other shareholder and I had been working with the bank and the previous owner to restructure this business for a couple of months. Finally, the bank relented took a haircut and cleared the final hurdle for the purchase. The union had previously agreed to work rule concessions and a small pay increase. This will make the manufacturing end of the business work very efficiently. We reaffirmed about 40% of the company's debt at 1% interest. (No personal guaranty!) Along with the money the other shareholder and I put in, the company's finances now look healthy. The bankruptcy court approved our agreement Wednesday and we emerged! All new management. Now, we'll see if I can sell machining, welding and tools as well as I could sell dances. LOL! I hope!

    I have to give major cudos to the Bankruptcy Trustee. He is a complete genius at making deals. The Judge was great. He listened carefully to our proposal, he had some great insights and he was instrumental in helping the bank to understand that a going concern paying something was worth a lot more than an empty building and some land in a less than attractive neighborhood. The bank's lawyer was great, he understood making a deal. Can't say the same for his client. But, the Judge and the Trustee were able to make the bank see the light. Our own lawyer was cool and steady through the whole process. He was quick and deadly when an unscrupulous business broker tried to muck up the deal. He also found a great labor lawyer (I understand that good labor lawyers barely exist in the south) who was able to negotiate a deal with the union. The shop steward is a shrewd guy who understood better than most how important it was to get a deal done and was able to communicate so clearly. I also understand good shop stewards are hard to come by in the south. I don't know how I'm going to keep him, but rest assured I'll try!

    Well, just wanted to share some thankful news on Thanksgiving.

    XOXO to all!

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  3. #2
    Banned Melonie's Avatar
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    Default Re: Well, I did it!

    ^^^ Major Congrats ! From what I hear from some of my business 'acquaintances' with ties to the auto and aircraft industries, you're in the right place, at the right time, with the right 'services' to offer !!! All you need now is dependable highly skilled workers, and local union elements who understand that your 'new' business could easily wind up right back in bankruptcy court if they start pressing.

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    Default Re: Well, I did it!

    Congrats! That's amazing wishing good fortune for you and your new business.

  5. #4
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    Default Re: Well, I did it!

    Awesome !! Huge congrats!

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    Default Re: Well, I did it!

    That's really great news, Congratulations!!!. Big kudos for you for getting yourself in the game.!

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    Default Re: Well, I did it!

    Neat what kinda tools and equipment are you manufacturing?

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    Veteran Member Krill_'s Avatar
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    Default Re: Well, I did it!

    Congrats!

    Tool guys can be very picky and go out of their way to buy American (because of all the Chinese shit), and also fiercely loyal to brands / distributors.

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    Default Re: Well, I did it!

    Congrats..... And good luck.
    The country has been looted.

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    Default Re: Well, I did it!

    Good for you and I hope you are a great success. Please get out in the shop and make some chips to see what operating those lathes and mills is like. It is really quite fun.

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    Default Re: Well, I did it!

    Congratulations! I'm sure you'll do well.

  12. #11
    The Jackal
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    Default Re: Well, I did it!

    Congratulations! Please tell us what kind of tools you are manufacturing provided it is not a classified information.

  13. #12
    God/dess Zofia's Avatar
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    Default Re: Well, I did it!

    In terms of unclassified stuff, flame cutting tips. We also manufacture/pre-fabricate stairways. Totally low tech, which is something new for me, but the numbers look right with the right financing. This was actually a pretty simple case. The previous owner paid himself too well and when business dropped off in the recession, he continued to pay himself too well. With income decreasing and expenses increasing, it did not take long for profits to turn into losses. The bank was willing to finance for a while, but then they cut the previous owner off and it was time for BK. Sad tale really. Had the owner cut his own take from the business and asked employees to make some work rule changes, he would have survived. Instead, he borrowed everything the banks thought his business could handle and then some.

    While I've been working on this deal for a couple of months, Monday is my first "day on the job." I already know the key employees. The shop steward and I are on a first name basis. He has introduced me to all of the shop staff. I've already let the maintenance foreman go with an early retirement. He had his maintenance man well trained. Under the new work rules, the maintenance man will move to salary and start training all the hourly employees on how to do maintenance in their work areas. The goal is to have people doing most of their own maintenance by the end of Q1 2012, with the new maintenance foreman's help. I have been on the shop floor a few times and Chgojoe's right, the lathes are fun! Safety first when actually using machinery, eye protectors and gloves. No heels. I did get a few whistles the first time I went to the shop wearing a short skirt and high heels. God I think I love those guys!

    The front office is a mixed bag. The estimator is top notch. He and I will be doing the sales. He kept the place busy despite the previous owner. I will give the estimator a lot more freedom in the sales realm. He knows our capabilities and what it will cost to get a job done. I'm going to concentrate on new customers and learning how to estimate accurately as well. The secretary/HR person has a good heart, but I'm not too sure about her head. Starting Monday we have an outside contractor doing payroll. While payroll should not be a difficult task, the shop steward gave me a heads up that front office was not always right about paychecks. That aggravated people. I hate outsourcing, but sometimes it's a necessary expedient. The triangle has seen too many scandals with outsource HR providers for me to be too confident in letting our benefits go outside the office. So, the secretary and I will have to work to get that part of the business right.

    The welding and manufacturing foremen seem strong. They have some new things to get used to with the new work rules. But, I think they'll adapt. Like the estimator, they were really the glue that kept the company alive through the recession and the previous owner's inattention.

    Thanks for the words of encouragement everyone!

    XOXO
    Z

  14. #13
    Member charlottevalentine's Avatar
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    Default Re: Well, I did it!

    Congrats, that's wonderful news! I wish you all the best

  15. #14
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    Default Re: Well, I did it!

    Congratulations!

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    Default Re: Well, I did it!

    Congrats! That's major good news

  17. #16
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    Default Re: Well, I did it!

    Awesome. I hope this venture works out well for all involved.

  18. #17
    Veteran Member Swagz's Avatar
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    Default Re: Well, I did it!

    How exciting! Best of luck and thanks for the inspiration!

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