We went through a couple decades where startup companies would get people to work insane hours for not that much money and no employment security in return for stock options – a piece of the action if things hit the bigtime. If it worked out, they could be millionaires. If it didn’t, they worked their asses off for nothing. They went into this willingly, but it was kind of exploitative. There’s also the whole gig economy thing.
I suspect we may be entering a period where people are once again appreciative of stable employment for a fair salary and benefits. While profit sharing or bonuses are always appreciated, I’m not sure the typical employee expects to share in the profits if the owners sell the company, especially if they were well treated and compensated while they worked there. Unfortunately, new owners often let some or all of the employees go. Even where the seller gets a commitment to keep the employees for a minimum period like 6 months or a year, most of them seem to move on by then. The exception seems to be when the buyer is a similar employer, like a family owned business sells to another family owned business. I would hope if anyone has their employees sign some kind of no compete clause that would prevent them from going to work for a competing WISP in the area, that they are released from those agreements as part of the sale. Not saying they should be allowed to take intellectual property or customer lists with them to a competitor. From: AF <af-boun...@af.afmug.com> On Behalf Of Tyson Burris Sent: Sunday, August 23, 2020 10:39 AM To: AnimalFarm Microwave Users Group <af@af.afmug.com> Subject: Re: [AFMUG] Buying and selling ISP’s Steve- We have one individual on our payroll, part time. He does consulting work for us and others. Assuming he hits all the goals we push him to do, and they are done correctly, he would get some money out of a sell of our company. No one else though. This is a special circumstance. Tyson Burris, President Internet Communications Inc. 739 Commerce Dr. Franklin, IN 46131 Office # 317-738-0320 Cell/Direct # 317-412-1540 Online: www.surfici.net What can ICI do for you? Broadband Wireless - PtP/PtMP Solutions - Mesh Wifi/Hotzones - IP Cameras - Fiber - Towers - Infrastructure. CONFIDENTIALITY NOTICE: This e-mail is intended for the addressee shown. It contains information that is confidential and protected from disclosure. Any review, dissemination or use of this transmission or its contents by unauthorized organizations or individuals is strictly prohibited. From: AF <af-boun...@af.afmug.com <mailto:af-boun...@af.afmug.com> > On Behalf Of Steve Jones Sent: Sunday, August 23, 2020 8:50 AM To: AnimalFarm Microwave Users Group <af@af.afmug.com <mailto:af@af.afmug.com> > Subject: Re: [AFMUG] Buying and selling ISP’s Is that a common thing in businesses? Employees getting a cut of a sale? I could see the purchaser giving a retention or severance, but I d9nt see how an employee would be entitled to anything more than a handshake or kick in the pants On Sun, Aug 23, 2020, 7:22 AM Matt Hoppes <mattli...@rivervalleyinternet.net <mailto:mattli...@rivervalleyinternet.net> > wrote: Lewis, It’s your business and you can do what you want to with it and I won’t judge anyone for that. We do do profit sharing at the end of the year. I guess it’s just a different cultural approach to business, while it’s true I do have all the risk, we wouldn’t be anywhere even close to where we are today if it weren’t for the dedicated employees and that I have. Yes some of them are high maintenance, but they bring talents and ability to the company that has kept it moving forward. On Aug 23, 2020, at 8:09 AM, Mark Radabaugh <m...@amplex.net <mailto:m...@amplex.net> > wrote: Or do the compromise between you and Matt - the ESOP where the employees end up owning it. You get nearly the same money out and they eventually get the same deal - if they can keep it going and build it. It’s harder because you have to figure out how to both get it to cash out and build at the same time. Mark On Aug 23, 2020, at 7:59 AM, Lewis Bergman <lewis.berg...@gmail.com <mailto:lewis.berg...@gmail.com> > wrote: This isn't the feel good kumbaya that might be popular, but I'll say this on the subject of division of profits: I started my WISP by myself. All of you who started with your own checkbook and sweat know what that took. My family sacrificed as I worked massive hours. I did everything from accounting to server builds maintenance to installs and tech support. All while I was making about 1/3 of minimum wage while I did it. We lived off my wife's school teacher salary. I did that for a pretty short time as we had some early success and after a couple of years I started hiring people. By the time I sold I did what I wanted when I wanted. The people I hired I paid better than average hourly wages for the job and gave bonuses paying them for their work as they did it. I never asked any of them to sacrifice like I did nor did they offer. I took all the risk. If we failed I was the one in financial ruin. They could all walk away inconvenienced but fairly unscathed while I was personally liable for all company credit cards, vendor payments, carrier contracts, etc. And of course you can tell where this is going. Myself and the other shareholders kept every dime and I sleep fine at night. I worked to help get all the best employees jobs. Sure some were angry because they somehow felt they deserved something. Those were also the same employees I could have and probably should have already gotten rid of as they were problem children. Risk and reward. I took the risk, I get the reward. You want rewards? Take the risk. I did give a few people bonuses, help setup two in related businesses without loans (funneled business their way) but it was not any kind of % or really all that significant.I did that because they had been good people first, hard workers second, and last but not least, made my life easier when we were doing our thing. I am a capitlist and make no apologies for it. On Sun, Aug 23, 2020 at 6:16 AM Matt Hoppes <mattli...@rivervalleyinternet.net <mailto:mattli...@rivervalleyinternet.net> > wrote: Now that I think about it - I wonder if my plan of C would be a way to reduce income taxes too on the amount received? Either by funneling the money through the company and paying the employees or having the buying company write a check to each of the key employees. I’m not sure which would yield better results for everyone. The way I look at it though - I don’t have hard partners. That often leads to problems. But everyone who sticks with the company and especially if they make a career out of it should be compensated nicely - both each year out of proceeds they helped make as well as out of a major sale if it ever happens. If anyone here has ever worked for a company where the owner sold and got 2 million and you had worked there for 10 years building it up —— well, how did you feel? Slap in the face. -- AF mailing list AF@af.afmug.com <mailto:AF@af.afmug.com> http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- Lewis Bergman 325-439-0533 Cell -- AF mailing list AF@af.afmug.com <mailto:AF@af.afmug.com> http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list AF@af.afmug.com <mailto:AF@af.afmug.com> http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list AF@af.afmug.com <mailto:AF@af.afmug.com> http://af.afmug.com/mailman/listinfo/af_af.afmug.com
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