Twisted Love and Money (20 page)

“Don’t threaten
me with legal action, you young whippersnapper,” Crawford bellowed.
Peter blanched.

“I... I wasn’t
threatening. I was just pointing out.”

“I think we had
better finish this interview now.” Crawford cut in coldly.

“No. No, not
yet. Let me get you to understand Mr. Crawford. If we lose your
business it comes more or less straight off the bottom line with
overheads running on. We want, and we must fight this. You know
every firm has a breakeven point. Take AF off the top and O’Byrne’s
is in trouble. Big trouble. We need this business. Let us try to
work this out.”

“Are you
offering me a bribe?” Crawford sounded almost amused.

“No,” Peter
reddened. “I never had such a thought.”

Pity, Crawford
thought ironically to himself and then went on.

“Peter I have
spoken to our ISO 9002 consultant, the one doing the quality
audit.”

Peter
brightened. “Simmons, a good person. She will support our quality
assessment in her report.”

“Afraid
not.”

“What?” Peter
was astounded.

“She has not
filed final report yet, but we expect she will support the AF case.
I spoke at length with her. In her view there are one or two key
areas where interpretation are key. When she files her report she
will criticize your quality control procedures.”
“I am staggered,” Peter said, sitting back in the sofa.

Crawford paused
wondering was his fish ready to be drawn in. He could see Peter was
agitated, afraid the interview would end leaving him with
nothing.

“Peter,”
Crawford sounded concerned. “How long have our firms done
business?”

“About twenty
years if you count the supermarket chains that AF took over during
the last ten years.”

“Yes.”

Crawford rubbed
his chin in contemplation. His hard eyes were assessing every
reaction of his subject.

“
Peter are you really concerned that AF has put your firm in a
dangerous position.”

“Yes, yes,”
Peter said emphatically, sensing an opening. “You, that is AF, are
in a very powerful position. You could wipe out our bottom line.
And given our expansion momentum, we could be stopped dead in the
water, cash wise.”

“Out of cash?”
Crawford asked gently.

Peter was
cautious, “Not quite, but we have commitments. The Board is not
sure how to handle an AF downside situation, if you see what I
mean.”

“I think so.”
Crawford smiled a reassuring smile, but his eyes had narrowed. From
Peter’s nervousness, he could sense that he had O’Byrne’s by the
throat.

“What about you
Peter?” he asked solicitously. “What is your personal
position?”

“Me, I’m all
right,” Peter laughed nervously. “I am the bosses only son. It’s
O’Rourke who is in trouble, he is Procurement and Supply, and John,
the new Finance man; he let us get overexposed.”

“Overexposed?”

Peter bit his
tongue, “Stretched, financially, I mean.”

“Still Peter,
your family must be wealthy. O’Byrne’s is large for a private
firm.”

“We have grown
very fast of course. All our money is tied up in the business. Dad
even had to bring in outsiders for the finance. They hold
Debentures, but were expecting equity when we went public.”

“They won’t be
happy,” Crawford remarked smiling, speaking as the experienced
businessman.

To Peter he
seemed almost relaxed, almost gossiping. Peter desperately wanted
to keep him in this vein and then find the right moment to steer
the conversation back to a solution.

“No indeed,
they will not be pleased,” Peter said seriously. “Mr. Crawford, I
must appeal to you. We need your understanding.”

“You have my
understanding Peter, and my concern. However we cannot change
reality. At AF we have a right first time policy and O’Byrne’s has
failed the test. Adverse publicity could be disastrous for AF. If
it was shown the organic produce we had on our shelves was not
truly organic. I am sure you appreciate we cannot take the
risk.”

Peter
swallowed. The hard tone had come back into Crawford’s voice.

“And disastrous
for us,” Peter said fervently.

Crawford looked
at his watch and stood up. He walked to his office window and
looked out. Peter sensed that the interview was coming to an end.
He waited anxiously, watching Crawford’s broad back and wondering
what he could say. To his surprise when Crawford turned around he
was smiling. This completely unnerved Peter, who grinned weakly in
return.

“Peter. AF also
has a policy of long-term association with suppliers. They work
with us and we with them. Once quality is high, we work with them
and ensure they get a reasonable return for their commitment.”

“We need a
second chance,” Peter jumped in. “We can work with AF to iron out
this problem.”

Crawford sat
down again. “Peter how long term is the O’Byrne family commitment
to O’Byrne’s as a firm?”

“Total.”

“I hear you
want the firm to go public?”

“That is the
plan, but O’Byrne as a family would continue to hold the majority
shareholding and run the firm.”

“Why go public
Peter?”

“It increases
the marketability of the shares. Let’s us raise finance for further
expansion.”

“So the O’Byrne
family holding will become diluted?”

“Yes, but
hopefully, worth considerably more as we expand.”

“And you Peter,
are you the long-term future Managing Director?”

“Longer term?
Dad has a few miles on the clock yet. And I have a bit of living to
do. Don’t want to be locked in to the grind too early. All work no
play,” Peter joked.

Crawford
laughed a friendly belly laugh. “Peter, what you need is a few
years with the jet set. Monte Carlo for the racing, winter on the
Ski slopes, early summer in Paris for the French Derby.”

“Now you are
talking,” Peter laughed; they were getting on well now.

“That would be
possible with AF Peter,” Crawford suggested.

“I don’t know
what you mean. The jet set would need a couple of million in the
bank. No Mon, no fun.”

Crawford
laughed. “How much is O’Byrne’s worth Peter. How much is your
share?”

Peter smiled
depreciatingly, “Personally I have ten percent but it does not vest
until my sister Ann-Marie is of age and even then that is not
certain as Dad is trustee and he has some discretionary powers.
However I have, as Dickens said, great expectations.”

“And if
O’Byrne’s, god forbid, was to go broke?”

Peter spread
his hands. “Nothing.”

“What you need
Peter,” Crawford suggested, “Is a halfway house. Something that
will ensure that you get some inheritance and not end up
broke.”

“Halfway houses
are hard to get. Grow or die, my dad says.”

“How much would
you settle for? Really, just to be able to enjoy yourself Peter,
how much is enough, even in this greedy world?”

Peter shrugged,
“Who would say no to a few million. Dad says we can be worth over a
hundred million, but it is hard to believe.”

“Even if that
is right” Crawford suggested “your dad may not put any of if you’re
way for twenty or thirty years.”

“And if I work
hard,” Peter agreed.

“I could put a
couple of million in your pocket Peter. And I could do it soon
rather than later.”

Peter laughed
nervously. He looked in amazement at Crawford. He could not be
serious. What was he saying?

“Don’t you
believe me?” Crawford asked.

“What would I
have to do? Commit murder?”

“It comes back
to O’Byrne’s.”

Crawford
paused. This was the crucial moment. If he could swing Peter he was
a long way towards his goal. “You see Peter, we have lost faith in
the ability of O’Byrne’s to work as a team.”

Peter opened
his mouth to object but Crawford silenced him with a look and a
raised hand. “Peter, nothing personal, this is business. AF likes
to have long-term relationships. We are most upset at the O’Byrne
situation. But there is a way through.”

“A way
through?” Peter’s hopes rose.

“It could make
you personally a millionaire Peter. But it is unpleasant medicine
for O’Byrne’s.”
Peter looked wide-eyed, not understanding, waiting for more.
Crawford leaned forward confidentially.

“AF is aware
that O’Byrne’s are a valuable business. We cannot help the fact
that quality management is below our standard. But it could be put
right the AF way.”

“The AF
way?”

“We could put
AF quality management into O’Byrne’s. We would have to let the
current man go, what is his name?”

“Dermot
O’Rourke is his name. Would that work?” Peter brightened, still
puzzled.

“Unfortunately
AF would have to acquire O’Byrne’s.”

“Acquire?”
Peter was shocked. “Acquire, you mean acquire O’Byrne’s?”

“For a fair
price of course.”

Peter felt
himself beginning to panic. This was way over his head. “Dad will
not sell,” he said firmly.

“Don’t be rash
Peter.” Crawford could sense Peters rising panic. He wanted to
soothe him.

“Peter let me
take a moment to explain.”
“Explain away. No deal.”

“If we go on
the way we are going,” Crawford persisted, friendly and intimate as
he spoke. “AF and O’Byrne’s will come to the end of their ways, We
will undoubtedly end up enriching lawyers in a court battle which
will do neither side any good. On the other hand Peter, the scheme
I have in mind, will make you a millionaire with immediate cash in
hand, and your Dad will get a fair price for O’Byrne’s. Or at least
his fair share.”
“I’d be a cash millionaire?” Peter latched on to this promise. It
was beginning to sink into him that Crawford had repeated that he
Peter could become a millionaire.

“If your Dad
continues,” Crawford continued persuasively, “then it will be a
rocky road. If he sells out I will ensure that he at least gets a
fair price. And you will get upfront money Peter. On conditions of
course.”

“What
conditions?” Peter was incredulous but wanted to hear more.

“It is very
simple Peter. I recognize that you are the son and heir. I have
sympathy with your position where whatever happens you will have to
depend on your father’s good humour to give you independent wealth.
If you support the AF position, subject to your being satisfied
that we are fair in our dealings, I will see you all right.”

“How can you do
that?”

“All big firms
have a war chest for takeovers. The O’Byrne situation, as I see it,
demands that AF take over O’Byrne’s in order to save the business.
Take over at a fair price of course and with due respect to our
long-term relationship. What we do is to strike a price, which
allows for your position Peter, as ultimate heir to the business
and we settle you up separately out of the war chest funds. We can
then put in the management needed to save the business.”

“Is it the only
way to save the business?” Peter asked doubtfully.

“Believe me it
is. Now Peter, are you interested in a personal fortune in the
millions range which you can touch while you are still young and
healthy?”

Peter laughed.
He sensed he was being offered thirty pieces of silver. But he
could not resist. “You would have to explain it very clearly to me
Mr. Crawford. What do you mean for instance, by a fair price for
O’Byrne’s.”

“Peter, from
where I look at it O’Byrne’s have put themselves into a position
where they will be forced to operate at close to breakeven. If they
take the publicity of a court case they will lose more business as
the quality problem is aired. The problem is, how to value such a
business?”

“We made over
twenty million last year, nearly thirty if I remember right,” Peter
protested.

“AF contributed
in a large portion to that. Now you cannot expect AF to bid to buy
and pay O’Byrne’s for their AF business. Only AF can restore that
business by direct intervention. In the circumstances we cannot be
expected to pay for the business we generate.”

“Dad and
Dorothy, my sister, they value the business in times profit at
between a hundred million and two hundred and fifty million.”
Crawford laughed. “Times no profit is nil value. Realism Peter. It
seems O’Byrne’s have overreached their ability and
imagination.”

“What is your
opinion Mr. Crawford?”

Crawford
smiled; time to put the offer on the table.

“Peter, the
asset base before borrowings would never justify more than sixty
million Euro. And that assumes a going concern; otherwise it’s
scrap value. Given the net assets after borrowing, there could be
very little left in a downside situation such as O’Byrne’s are in.
However there is recovery potential in the right hands and you do
have good supplier contacts in Ireland. All in all I would say
fifty million is a fair estimate of the value of the business.”

“Dad would be
very disappointed at a price like that.”

“Because of the
long-term association Peter, I will recognize the position with a
further ten million. This ten million can either be on a
confidential basis or declared.”

Peter felt a
rush of excitement. His hands trembled. Was he really being offered
ten million, in sterling? Wow, this was big business.

“However
Peter,” Crawford continued. “Sixty million would be our absolute
max. This in Euro as is your profit. Any amount the O’Byrne
shareholders want over the sixty million would have to come out of
your share from the war chest. We would have an extra five million
in the war chest for you Peter. That means you could get five
million cash offshore.”

“For me
personally?”

“Plus whatever
accrues to your trust fund, for your existing ten percent holding
in the business. Do you understand?”
“Eleven million.” Peter felt excited.