When you can’t stand your partner anymore, you offer them a price for their shares. They have two choices: accept or buy you out. Triggering a shotgun deal can have explosive results, as Kim Ades found when she offered to buy out her husband.
The secret to a shotgun deal is making a reasonable offer—one that you would be willing to accept yourself. To find out what a fair offer would be, get your Value Builder Score now.
Kim Ades, MBA, is president and founder of Frame of Mind Coaching and JournalEngine™ Software. Author, speaker, entrepreneur, coach, and mother of five, Kim is one of North America’s foremost experts on coaching with a focus on mindset and thought mastery.
By using her unique process of integrating online journaling into her coaching, Kim helps her highly driven clients examine and shift their thinking in order to yield extraordinary results.
Before the Frame of Mind Coaching program, Kim was the founder and president of Upward Motion, and is well known for dramatically penetrating the international real estate industry with a web-based assessment tool for the recruitment, selection and training of top performing real estate agents.
Kim is a regular contributor and expert guest for a number of publications and online magazines, including Choice Magazine, Broker Agent Advisor, WCR, ATD and SHRM.
Some Highlights of the Show
Business: Upward Motion
2:10: “We did … simulation based assessments for the purpose of helping companies make better selection and recruiting decisions.”
2:50: “The most important attribute, whether sales, technical, engineer or leader, is emotional resilience.”
3:20: “Grit… It’s the ability to bounce back from adversity with speed and agility and leverage the adversity.”
4:25: The evolution of the business plan.
8:52: Recurring revenue of $1.2M from brokers across the country.
9:40: The triggering event.
9:55: “Really good business partners … together we were quite a formidable team… When our marriage fell apart, we actually thought we could keep working together.”
10:40: “We [my partner and I] gave [my husband] an offer. The offer was to buy him out over a 5-year period.”
11:55: “I’m not entertaining this; go back to the drawing board.”
12:00: “I tried to find a partner who I thought would be able to alleviate the [financial] burden.”
13:30: Pulled the plug on the partner and the offer at the final hour.
13:45: The shotgun clause.
15:00: $800,000 for 44%.
16:04: “We have kids together; I have to continue living… he has to take that into account… What is the price that I can afford, that I believe he would be willing to take and move along with his life.”
17:00: “I gave him 48 hours; he went back to the partner that I rejected … teamed up with them, got the money and bought me out.”
18:00: “It was one of the most devastating, shocking moments of my whole life.”
19:05: “It’s eleven years later and he and I are friends, we raise our children together and we’ve come a long way. I mean, it was a tough, tough time.
19:50: If you had a mulligan.
19:55: “Just because it’s stressful, doesn’t mean I can’t handle it.”
22:00: “I am not my company… Even though I called it my baby, it wasn’t a child; it was a concept a creation. I have learned over the years that I can just go do the next thing.”
23:50: The critical error when structuring the deal that cost me $300,000 in tax debt.
25:55: Selling a company is not a DIY project; it is [most likely] the most important transaction of your life. You will want a deal lawyer and a deal accountant. Not a day-to-day lawyer.
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