I meant ‘compromise’ in the sense that it rewards both the original owner and the employees., not in terms of the value out of the business.
Mark > On Aug 23, 2020, at 9:45 AM, Lewis Bergman <lewis.berg...@gmail.com> wrote: > > > ESOP isn't a compromise. It is a group of employees willing to risk what they > have for what they want. I would rather sell to e employee's than anyone else. > >> On Sun, Aug 23, 2020 at 7:09 AM Mark Radabaugh <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> 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> 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 >>>> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >>> >>> >>> -- >>> Lewis Bergman >>> 325-439-0533 Cell >>> -- >>> AF mailing list >>> AF@af.afmug.com >>> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> >> -- >> AF mailing list >> 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 > http://af.afmug.com/mailman/listinfo/af_af.afmug.com
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