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Message
Negotiating With Another Company - Need Help
Posted on 2/11/14 at 10:09 am
Posted on 2/11/14 at 10:09 am
I'm in the process of negotiating with an old employer that wants me back.
I told him I wanted shares of the company, which he said wasn't going to happen. So, next thing I said is that I wanted 2/3 voting rights to make sure that they won't sell the company from under me (giving me some job security). Is there any more to the Voting Rights than that?
Basically, I'm at a very secure job now...not desperate to make a move, but they are offering me double the pay + 10% of the net revenue. 10% of the Net Revenue is complete bullshite...And I don't think he's going to buy into 10% Gross Revenue.
If I make this move, I'm a huge asset to his company, and cripple the company I'm at now. What other ways can I help myself in this negotiation? Basically I'm leaving a secure position with a lot of control - to potentially moving to a company where I'd be another employee, but I want to be compensated properly for the increase sales and profits that I'd be bringing with me.
Any strategies/ tactics are GREATLY appreciated.
I told him I wanted shares of the company, which he said wasn't going to happen. So, next thing I said is that I wanted 2/3 voting rights to make sure that they won't sell the company from under me (giving me some job security). Is there any more to the Voting Rights than that?
Basically, I'm at a very secure job now...not desperate to make a move, but they are offering me double the pay + 10% of the net revenue. 10% of the Net Revenue is complete bullshite...And I don't think he's going to buy into 10% Gross Revenue.
If I make this move, I'm a huge asset to his company, and cripple the company I'm at now. What other ways can I help myself in this negotiation? Basically I'm leaving a secure position with a lot of control - to potentially moving to a company where I'd be another employee, but I want to be compensated properly for the increase sales and profits that I'd be bringing with me.
Any strategies/ tactics are GREATLY appreciated.
This post was edited on 2/11/14 at 10:32 am
4
Posted on 2/11/14 at 1:46 pm to lsugerberbaby
quote:
So, next thing I said is that I wanted 2/3 voting rights to make sure that they won't sell the company from under me (giving me some job security). Is there any more to the Voting Rights than that?
There is ZERO chance someone is going to give you voting rights to the company
quote:
but they are offering me double the pay + 10% of the net revenue.
DUDE. They are doubling your salary and giving you profit sharing? You are being a greedy.
Posted on 2/11/14 at 2:09 pm to lsugerberbaby
You never look better to a company than you do the day you are hired, I see no fault in trying to secure as much as possible up front.
On the other hand, there is a point where demands become unreasonable and I believe you are there.
If you are this valuable and irreplaceable then the time has come for you to start your own company.
On the other hand, there is a point where demands become unreasonable and I believe you are there.
If you are this valuable and irreplaceable then the time has come for you to start your own company.
This post was edited on 2/11/14 at 2:10 pm
Posted on 2/11/14 at 3:02 pm to lsugerberbaby
quote:
10% of the Net Revenue is complete bullshite...And I don't think he's going to buy into 10% Gross Revenue.
What industry? What is the other companies present place in that industry? Have you expressed the reason you want voting rights? Have they done anything to allay the fear they will sell?
Posted on 2/11/14 at 3:09 pm to barry
quote:
giving you profit sharing?
Yeah, but of NET profit...Owners of a company can easily frick you out of money. He said he'd show me the books (both his, and of his CPA's.
I went back to talk with him at lunch, and basically told him frick the profit sharing, and to give me two more years of my guaranteed salary.
Posted on 2/11/14 at 3:13 pm to wiltznucs
quote:
If you are this valuable and irreplaceable then the time has come for you to start your own company.
It's my end goal. Could I do it? Absolutely...I just don't feel the time is right. The margins in this market are way too tight, and personally I don't want to have to compete against it right now. A time will come when things will settle down, and profits will increase again...but for now, I just want to make the most money I can.
quote:
On the other hand, there is a point where demands become unreasonable and I believe you are there.
I understand what you're saying here, I really do. I just don't want to screw myself and build their company back up, and not reap the benefits of increasing their revenue.
Posted on 2/11/14 at 3:15 pm to TJG210
Construction Industry
They entertained the idea a few years ago...but honestly, I just don't trust the son - to whom the company will be left to. He's bat-shite crazy.
quote:
Have you expressed the reason you want voting rights? Have they done anything to allay the fear they will sell?
They entertained the idea a few years ago...but honestly, I just don't trust the son - to whom the company will be left to. He's bat-shite crazy.
Posted on 2/11/14 at 3:22 pm to lsugerberbaby
If they are doubling your salary, save half of it and if you lose your job a year later, you have a year to look for a job or set up a business.
Posted on 2/11/14 at 3:30 pm to lsugerberbaby
quote:
I understand what you're saying here, I really do. I just don't want to screw myself and build their company back up, and not reap the benefits of increasing their revenue.
What about a percentage of the increase in revenue?
Posted on 2/11/14 at 3:32 pm to lsugerberbaby
I did the same thing a few years ago. In the same industry. Started a new office location where I completely run it all and get 25% of the rev's, but I handle all of the books so I know what goes in and out. I left for a 15% raise and the rev's that are paid yearly. I would recommend a construction attorney that has experience in this field.
Posted on 2/11/14 at 3:47 pm to CubsFanBudMan
If it was gross revenue, that'd be a totally different story. There are others in that family owned company that can determine what the net revenue is.
Posted on 2/11/14 at 3:53 pm to lsugerberbaby
quote:
cripple the company I'm at now. What other ways can I help myself in this negotiation? Basically I'm leaving a secure position with a lot of control - to potentially moving to a company where I'd be another employee, but I want to be compensated properly for the increase sales and profits that I'd be bringing with me.
If this is true, Tell your current company to ante up or lose you.
Posted on 2/11/14 at 4:17 pm to LSUregit
That's on tomorrow's agenda.
Posted on 2/11/14 at 4:23 pm to lsugerberbaby
quote:
but of NET profit
Jesus H Christ. Net profit is the profit of the company. If you are as valuable as you think you are you'd know this.
Posted on 2/11/14 at 4:59 pm to VABuckeye
10% of net revenue? They're giving you 10% of the company with no voting rights. Doesn't sound that bad..
Posted on 2/11/14 at 5:03 pm to CubsFanBudMan
quote:
What about a percentage of the increase in revenue?
This is what I would shoot for.
Posted on 2/11/14 at 5:25 pm to lsugerberbaby
quote:
The margins in this market are way too tight
Yet you want them to give you a percentage of revenue?
Posted on 2/12/14 at 6:59 am to barry
No, I don't want them to give me a percentage of the revenue - that was their offer to me.
Maybe some of your have your own businesses...maybe some of you are just business savy, but Net Revenue in a business like this (with low margins) isn't shite. A boss can expense the shite out of you and you have no say so about it. The gross revenue eliminates those questions.
Y'all don't understand the margins in this company - no way for you to without being in the business. So, let's just assume 15% profit margin and take $2MM in gross revenue at 10%, is the same as 1.5% of gross revenue. That 1.5% of gross revenue isn't worth it to me for two years...I'd rather secure my six figure salary for two more years.
Maybe some of your have your own businesses...maybe some of you are just business savy, but Net Revenue in a business like this (with low margins) isn't shite. A boss can expense the shite out of you and you have no say so about it. The gross revenue eliminates those questions.
Y'all don't understand the margins in this company - no way for you to without being in the business. So, let's just assume 15% profit margin and take $2MM in gross revenue at 10%, is the same as 1.5% of gross revenue. That 1.5% of gross revenue isn't worth it to me for two years...I'd rather secure my six figure salary for two more years.
Posted on 2/12/14 at 11:08 am to lsugerberbaby
quote:
No, I don't want them to give me a percentage of the revenue - that was their offer to me.
You said they offered you a cut of Net Income, please stop saying net revenue, that's just confusing. You said right below this that you wanted a cut of revenue because they can't make up fictional expenses to dwindle down the net income.
My question is, you said they are doubling your salary, why are you making such a big deal about the profit sharing.
Also you keep saying you want a larger cut of gross revenue, but at the same time saying margins in the industry are razor thin. You do realize saying these too statements makes no sense. How do you expect someone to give you a large cut of revenue when the margins are so thin that they won't make a profit.
This post was edited on 2/12/14 at 11:11 am
Posted on 2/12/14 at 6:59 pm to barry
I have never seen a person as valuable to a company as they think.
If the OP is that valuable I can't imagine he isn't under an employment agreement.
There is zero chance I would put my future in the family owned business that he described.
If the OP is that valuable I can't imagine he isn't under an employment agreement.
There is zero chance I would put my future in the family owned business that he described.
This post was edited on 2/12/14 at 7:00 pm
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