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.
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.