Trusted Advisor or Deal Killer?
Joe Lindsey, M&AMI, CM&AP, CBI
Chairman: The M&A Source Board of Directors
Let's start with the thesis that this article was inspired by actual events. It could be an amalgam of multiple experiences combined into one story. Let's assume that the names, dates and other data relevant to this article were changed because of concerns of confidentiality. Regardless, let's see if lessons can be learned from this article.
The business was a provider of chemical products whose primary customers were involved with fracking; the injection of fluid into shale beds at high pressure in order to free up petroleum resources such as oil or natural gas. After more than 20 years of moderately successful operations, the owner (Arnie) and his daughter (Cindy) had reached the point in which they had differing ideas on what to do next with the business. In his mid-sixties, Arnie was burnt out and wanted to explore other opportunities...like retiring and spending more time pursuing leisure activities. Cindy wanted to grow the business, had ideas on how to achieve that growth, but was reluctant to assume the personal liabilities and financial guarantees that accompany business ownership.