SME with ill owner -advice please

SME with ill owner -advice please

Author
Discussion

Turn7

Original Poster:

23,502 posts

220 months

Tuesday 9th July 2019
quotequote all
SpeedBash said:
Turn7 said:
To say he is very odd is a huge understatement.
Intrigued. Examples please.
I wrote a long post put on this, but then deleted it.

I currently still need the job and have no idea who may read this.

Suffice to say that no member of staff feels comfortable around him, he appears very devious and has a nasty streak.

For what its worth, I enjoy the work and he pays ok, but Im not buying the business as I think its time is drawing short.

If he wasnt ill, he may actually see just how close to actually stalling we are and then do something about it.

singlecoil

33,313 posts

245 months

Tuesday 9th July 2019
quotequote all
Turn7 said:
SpeedBash said:
Turn7 said:
To say he is very odd is a huge understatement.
Intrigued. Examples please.
I wrote a long post put on this, but then deleted it.

I currently still need the job and have no idea who may read this.

Suffice to say that no member of staff feels comfortable around him, he appears very devious and has a nasty streak.

For what its worth, I enjoy the work and he pays ok, but Im not buying the business as I think its time is drawing short.

If he wasnt ill, he may actually see just how close to actually stalling we are and then do something about it.
You're right to be cautious, it was pretty easy to figure out which firm it is.

Jasey_

4,823 posts

177 months

Tuesday 9th July 2019
quotequote all
Be prepared to jump.

Sounds like it's only a question of time before he pops his clogs or loses the plot completely.

Frimley111R

15,537 posts

233 months

Wednesday 10th July 2019
quotequote all
Given your comments I'd say you need to jump before it all implodes. If you think you can start with your colleagues then do so but it's rarely easy.

super7

1,922 posts

207 months

Wednesday 10th July 2019
quotequote all
You've answered your own question...... i'm surprised you needed to ask for opinions!!

I would just leave him to it and setup with the other members. Whilst work might be decreasing because of the big boys, you just need to develop a niche and operate in that, then you can charge more because the big boys aren't interested...

Don't bother talking to the owner, talk to the other team members.

I assume none of his stuff is protected by IP rights etc?? Does your employment contract stop you from competing as well??

anonymous-user

53 months

Wednesday 10th July 2019
quotequote all
Turn7 said:
Above average salaries help....

No one ever wants to engage with him though,they all tend to try and avoid him if poss.
And you're on here asking what to do?

Turn7

Original Poster:

23,502 posts

220 months

Wednesday 10th July 2019
quotequote all
keirik said:
Turn7 said:
Above average salaries help....

No one ever wants to engage with him though,they all tend to try and avoid him if poss.
And you're on here asking what to do?
Yep.

I get your point, but as Ive said, the money is alright, its local and I dont miind the work.

We do have to deal with the bottom of the market, which I dont like.

For instance - this week, we had to go to what was, once far and away our biggest customer - a nightclub. Clubs are death these days, and this has hurt us a lot.

Anyways,whilst doing the requested work, we did notice a huge amount of these classy coasters on the bars and everywhere....

A nightclub......advertising a prostitution website....

Stay classy guys.....


russy01

4,693 posts

180 months

Thursday 11th July 2019
quotequote all
Its easy to think jump - but I see opportunity. You clearly enjoy your job, its convenient and it sounds like you'd be upset to see the company go...

So, is there a credible way of taking over the business (buy out) or starting afresh?

I was part of a similar situation some years ago, and despite everybody planning to turf the fella out and start a new company, it ended up better for both parties financially by agreeing a sale.

Story below - feel free to skip.

Once upon a time...

We were the UK agency for a large European manufacturer in the construction trade. The owner was not Ill, but old & wealthy and had lost all desire to grow the business despite doing a great job of building it from scratch many years earlier. His actions started to strangle the business and started dampening the spirits of its young and aspirational workforce (some of which were already starting to interview elsewhere)

People started talking about buying him out or starting afresh. But it was decided that starting afresh would actually be hard work, because the business operated via its loyal customers and long standing relationships. Despite these concerns a pair of employees (sensing that our EU partners were not happy with UK performance) approached the EU boss (in secret) and started a basic conversation about setting up a new agency from scratch and cutting the other guy out.

The EU boss was not entirely happy and didnt want to completely screw the founder, he was concerned that the new agency would not have the business & customer relationships from the off and thus his business would suffer and potentially lose out to competition in the transition period. He told them to find a half way house...

In the end the pair of employees give the owner an ultimatum:

- We leave, we start afresh and leave you with nothing as all other staff have agreed to come with. (Bumpy first year starting from scratch, forecast to break even IF majority of customers come on board and Manufacturer upholds existing trade agreement).

OR

- We agree a cheap cash sale and take over, you can tell all your mates you sold out, keep your kudos and walk away.


The old fella seen since and couldnt be bothered to fight, they agreed a cheap cash sale and he let them get on with it. He took 33% of something, instead of being left 100% of nothing.

Moral of the story is that its not always about screwing people. The buyers made the right choice paid him off and were able to continue trade as if nothing happened at all (apart from an office move). The changes we were able to bring in during the first year were enough to grow the business (and bottom line) enough to pay off the purchase loan and turn a small profit.

Everybody lived happily ever after.

Turn7

Original Poster:

23,502 posts

220 months

Thursday 15th August 2019
quotequote all
Thought Id update this ----

Boss came in 2 weeks and basically told us he has sold out to the local, bigger competitor....

Their Boss came over next day and span us a lod of old tosh and since then nothing has happened....

The deal was apprently finalised TODAY - why not wait until then before tellung us then ffs ?

We are all being TUPED allegedly, but Im not sure how this going to pan out for me, as I have a role that I dont think will be open to me in the new setup ...

We shall have to wait and see what pans out, but for me, I think its been handled really badly so far - so much uncertainty for one thing.

eliot

11,364 posts

253 months

Thursday 15th August 2019
quotequote all
if you are a key member of staff you will be retained, if you are an expensive duplicate of an existing role in the new company you will be told ‘nothing will change’ followed in 3-6 months with a fkitybye

Vaud

50,289 posts

154 months

Thursday 15th August 2019
quotequote all

The first response to your post was:

mr_spock said:
Jump.
It remains valid...

Turn7

Original Poster:

23,502 posts

220 months

Thursday 15th August 2019
quotequote all
Vaud said:
The first response to your post was:

mr_spock said:
Jump.
It remains valid...
Its not been dismissed, trust me.

PhilboSE

4,322 posts

225 months

Saturday 17th August 2019
quotequote all
If there is impending possibility of redundancy then it might be worth holding on for the cash lump. But get your ducks in a row as well. If you are TUPEd then they should be very nervous of giving you a poor redundancy package.

Frimley111R

15,537 posts

233 months

Monday 19th August 2019
quotequote all
eliot said:
if you are a key member of staff you will be retained, if you are an expensive duplicate of an existing role in the new company you will be told ‘nothing will change’ followed in 3-6 months with a fkitybye
Despite a common feeling that staff are often jetisoned in company sales, the reality is that the majority are kept on as they are part of the sale and have skills, intellectual property (what they know about products and the way the company works) ,etc.

slow_poke

1,855 posts

233 months

Monday 19th August 2019
quotequote all
If New Boss has bought out the company lock, stock & barrel from Old Boss, is this a TUPE scenario for OldCo staff? Might not, methinks.

Turn7

Original Poster:

23,502 posts

220 months

Monday 19th August 2019
quotequote all
We have been told it’s a TUPE deal,but that’s still all we’ve been told.

Two and a half weeks after the initial announcement....

Piss poor I think.

Edited by Turn7 on Monday 19th August 19:26

slow_poke

1,855 posts

233 months

Monday 19th August 2019
quotequote all
Doesn't sound like a TUPE deal to me. But I'm no expert.

Sounds like you need an expert.

Turn7

Original Poster:

23,502 posts

220 months

Monday 19th August 2019
quotequote all
Problem right now is noone kows anything, its a joke.

The "deal" apparently was due to be signed last week and wasnt, and will done on Wednesday...

IN the mean time, everyone here has a million questions and insecurities and the boss carries on like nothings changed.

Sporky

6,085 posts

63 months

Monday 19th August 2019
quotequote all
Get ready to jump. Set up some interviews, either as practice, or in case there's something out there.

It's far easier to find a new job while you're still employed.

Vaud

50,289 posts

154 months

Monday 19th August 2019
quotequote all
For the TUPE rules, ACAS free helpline can provide the basics as to your rights.