I really, really, really hate my boss.
I’m sure a lot of people say that, but of course, not a lot of people have the problems that I do.
I was tasked with creating a 50 page pitch-book regarding a potential acquisition that we were going to make. The potential company had yearly revenues in the $200m range, but was barely showing a profit. The industry that they operated in wasn’t that competitive by any means.
After doing some investigating, I found that the company had ridiculous overhead costs. Absolutely absurd. They had all of the employees on a very generous profit-sharing plan with plenty of stock options. In addition, there were way too many employees than there needed to be.
As I learned at Harvard, in order to run a successful business, you need to control costs.
That’s certainly one thing that this business was not doing. Based on my estimates, I’d be able to shed 50% of the workforce, eliminate 30% of the stock option plan, and reduce profit-sharing by 25%. These savings would have brought the company from a 4% profit margin to a 39% profit margin. That’s fucking huge!
When I presented my idea to the board, everyone was all for the proposal. Everyone except my boss. He didn’t understand the industry and didn’t want to invest. I don’t understand it. We all pled our case, but it’s his call.
Fast forward a couple of months and the business is bought by one of our largest competitors. They implemented all of the cost-cutting measures that I had proposed.
Exactly as I had anticipated.
That acquisition would have made me 10% of the increased profits, or about $15 million dollars.
Thanks boss, you fucking ass-hole.