After Dad Left Chapter 5

After Dad Left
Chapter 5

The following weeks at work were extraordinary. Robin appeared detached from me, surprised by what we had just shared. Then, the strangest thing, at least to me, was the looks I was getting from people on every building floor.

That first month, I worked on three cases, mostly just reviewing financials as I had done for Helen Jameson. In all three instances, I did uncover a few things that were helpful to the case. It's nothing as important as the Jameson case but still beneficial. At the end of my first month with the firm, I received my CPA license framed and hung in my office along with my professional certificate in accounting and my master's certificate in account.

At the start of my second month with the firm, I was called to Richard Butler's office for a meeting. Jeremy Land had a long-time friend who passed away, leaving a large business to two daughters, who were overwhelmed. They wanted to sell the company but did not know its worth. Jeremy wanted me to do an assessment and possibly help the daughters with the act of sale.

I agreed to do everything I possibly could, and Jeremy informed me that all of the firm's files on the company would be in my office in the morning. I went back down to my office and finished up the day. The next morning, I arrived early, and my office was full of file boxes. They went back nine years, so I put the older ones in the corner and tackled just the last five years.

I started separating the files as best as possible, finding each year's financial statements. The Gadden and Associates Company consisted of three smaller companies. Gadden Machine Works Inc., a large industrial repair machine shop, was the first and most significant. Second was Miller Hardware, a warehouse not far from the machine shop. Third was Gadden Properties, which leased all current real estate back to the other two companies. I compiled all the financials for all five years and sorted them out. Then, I read the correspondence between Butler, Land Reyes, and Milton Gadden.

I was putting most of the correspondence back in the file box when a small pocket notebook fell out of one of the files. I picked it up and opened it, scanning several pages. Something caught my eye, so I sat in my chair and read the notes one page at a time. A year or so before his death, Milton Gadden had talked to three of his employees about buying him out of the business. They were notations about possible prices and what shares employees would receive. On one page, it appeared that Mr. Gadden would retain the property and return the buildings to the new owners.

I had Terri Clark set up a meeting at my office with three prospective employees the following week on a Wednesday afternoon. I first met Charlie Miller, Tim Saxon, and Derrick Miller. Charlie and Derrick were brothers who had worked for Gadden Machine Works for over twenty years. Tim Saxon was the job planner and purchasing agent and had been there for eighteen years. After speaking with them about the notes I found in Milton Godden's files, I realized he was already trying to assemble a sale but then became ill. In essence, Charlie, Tim, and Derrick would pay monthly notes for the business and rent on the two buildings. The family was to retain Gadden Properties, where one of his daughters worked. All three men were still interested in buying the business if the price was right. They were very nervous about an outsider purchasing the company and perhaps shaking things up.

Since I already had prospective buyers, it didn't seem wise to put the company on the market now. First, I evaluated the previous five years of available returns. Milton Gadden took quite a large sum of money out of the company through salary and bonuses. After looking at the present accounts payable and accounts receivable, there was a surplus of about seven hundred and eighty thousand dollars.

I started assembling a package for the three men to buy the company. After doing an analysis, I came up with a value of four million two hundred thousand for both the machine shop and hardware business. Milton Gadden took a salary of ten thousand five hundred dollars a month, which came to five hundred forty-six thousand dollars a year. Not abnormal, his wife was Vice President of the company and was paid three thousand dollars a week for one hundred fifty-six thousand dollars a year. During the last three years, he had taken several bonuses at least once a year, with the minimum being seventy-five thousand. The company and insurance that owned both Gadden's cars were paid through the company. In addition, there were large expenditures on the credit card for meals and other assorted expenses charged by the company.

I calculated that the Godden's took nearly seventy-five thousand dollars yearly in salary, bonuses, and commissions. I started to put together a plan for the three men to buy the business in installments. The key was ensuring it was attractive enough to the Gadden family and affordable so the men could keep it running.

I talked to Jennifer Gadden, who ran Gadden Properties. We discussed a monthly fee for the employees to rent the machine shop and hardware buildings. After determining Jennifer's market value, I finalized my idea.

I set up a meeting with the Gadden family, Charlie, Tim, and Derrick. The meeting was set for Friday at ten in the morning. I figured it would be a marathon meeting, so I asked Jeremy Land if he could set up a lunch for all involved. He agreed, and the meeting was set. I asked Robin Woods if she would accompany me to the conference, and she agreed.

Since the night Robin and I had slept together, I had to admit she was acting differently. I'm not sure if perhaps she regretted what we had done. Several days after the encounter, I asked her for dinner, but she declined. But I let it be for now because I was busy on the Gadden account.

The conference room was packed when I arrived with Robin on Friday morning. In attendance were Milton Gadden's wife, Margaret, both of his daughters, Jennifer and Milly, and their husbands. Richard Butler and Jeremy Land were also present, and our company stenographer was also there. I had also asked someone from Cattleman's Bank and Trust to be there. That was the bank that Milton Gadden had used for years, and this was his banker whom I had met with several times.

Robin and I took our seats, and I started laying out all the folders we had brought. I felt that this would be a defining moment in my early career. I had handled the research independently, and this was all on me. If this went badly, I would have a black eye.

Before we could begin, Mrs. Margaret Gadden announced something I was not expecting. Milton and Margaret had done well through the years and invested wisely. Though not admitting to a monetary figure, Margaret Gadden said she was financially secure for the rest of her life. Therefore, she was willing to sign the company to her two daughters and allow them to make the sale.

This completely changed the scenario, but I decided to move forward anyway since I was already prepared for the sale. I proposed that Charlie Miller, Tim Saxon, and Derrick Miller buy Gadden Machine Works and Gadden Hardware outright. I used Milton Gadden's annual salary as a basis for the installment payments on the business. By doing that, the three new owners would not add any expenses to their monthly fees. They converted Mr. Godden's salary into monthly payments to purchase the businesses.

Since the prospective buyers were willing to lease both buildings for ten years, I asked for a slight reduction in the overall cost of the business itself. I listed the machine shops and hardware store's proposed selling price at three million seven hundred and eighty thousand dollars. There would be no down payment. However, the bank would finance the cost of the business. The note on the company would be roughly sixty-eight thousand a month to Cattlemen's Bank and Trust. The Gadden daughter would split the check of three million seven hundred and eighty thousand dollars.

In addition, Gadden Machine Works would pay $9,900 a month in rent, and Gadden Hardware would pay $35,500. So, the daughters would have another $12,950 a month in rent coming in.

By the time I had laid all of this out, Jeremy Land suggested we break for lunch and let everyone talk privately. Robin and I went to the breakroom, made a small plate, and ate. After an hour or so, the meeting was reconvened. The Gadden family attorney said the family was pleased with the proposal, but the taxes on a three-million-plus dollar sale were staggering. He said that, when speaking for the family, they might be willing to finance the business themselves. That way, the daughters would accrue taxes much lower by spreading the purchase price out over the years instead of one lump sum.

Since I was representing the Gadden family, I had to mention that they had no options if they decided to go that route, and the business failed. I saw Richard Butler nodding at Mrs. Gadden, not knowing what he meant.

To offset the taxes, I could place money into treasury, state, and municipal bonds that would not be taxable until withdrawal. After all, they would have a little over twelve thousand to split monthly from rent payments. Both daughters had been set up in a business by their father years ago. Jennifer Gadden was an interior designer who did quite well. Milly Gadden had her own computer business, which also did much business.

My recommendation to the Gadden family was to take some time to think about the options and schedule another meeting when they were confident in their direction. Surprisingly, the Gadden family attorney asked us if the family could have room for a private conversation.
Everyone agreed, and we filed into the lobby, leaving the family alone to talk.

The Gadden account belonged to Jeremy Land, and it was one of his first accounts. I knew he valued the Gadden family and had known the daughters since they were toddlers. We waited about twenty minutes before Jennifer Gadden opened the door and motioned us to the office. We all sat, and Mrs. Gadden leaned forward on the table.

"Since I am the senior member of the Gadden family, I have been asked to speak for all of us. My husband was very fond of these three young men who have been with this company for many years. I cannot think of a better way to continue Milton's legacy than keeping the company with the men he trusted the most. Therefore, we will sell the company to these men and elect to use Cattlemen's Bank and Trust for the sale. We will lease the buildings for the mentioned amount and give them a ninety-day startup period with no rent due.", she started.

"Mr. Williams, we want to meet again with you in a week so you can present us with ways to offset the tax liability we will incur.
From now on, Jeremy will continue to handle this family's legal issues. Since Butler, Land, and Reyes now has its certified public accountant, I'm asking that Mr. Williams handles all of our financial matters.", she said.

"Margaret, thank you so much for trusting us. I promise we will not let you down, "Jeremy Land said.

"Jeremy, my husband, was a shrewd businessman. He didn't achieve the success he did without being a good judge of character. He trusted you, and I trust you. I know you won't let me down," she replied.

The meeting ended, and the three new business owners set up a meeting with Cattleman's Bank and Trust to arrange the loan. Everyone left with a smile on their face, so barring any unforeseen circumstances, we had a deal. I rode down the elevator with Robin, and we returned to our offices. I wanted to talk to Robin that evening, but she left her office quickly before I could approach her. Around five o'clock, I grabbed my coat and headed for the elevator when Terri approached me.

"You have a minute?" she asked, looking nervous.

"Of course, what's up," I replied.

"Tim, I don't quite know how to say this, but you are a very nice guy. Damn, this is hard, but" she stuttered.

"Terri, just tell me," I urged.

"Tim, please be careful around the women in this building. They talk about everything that goes on; I mean everything. So please be careful," she said softly, touching my hand.

I promised, "I'll keep that in mind, Terri. I'll try not to make a mistake."

"Uh, it's a little late now, don't you think?" Terri responded.

"I'm not sure what you mean, Terri," I replied.

"Uh, you and Robin," she quickly replied.

"Robin, I must be missing something," I said, suddenly concerned.

"Well, unless the rumor mill is wrong, and it seldom is, Robin was able to get you in bed," she stated, looking me dead in the eye.

"How could anyone know," I began, then abruptly stopped.

"Well, if you didn't mention it. Only one other person could have," Terri stated.

"Where did you hear it from, Terri," I asked.

"Nora Davis, the gossip queen," Terri admitted.

"Ok, Terri, thanks for the advice," I answered, walking off.

I was called to Richard Butler's office that Monday for a nine o'clock meeting. I was still reeling from what Terri Clark had told me, knowing it was all over the building. I was a few minutes early, but Richard, Jeremy, and Carlos were already waiting for me. Carla ushered me in and rubbed my back as I entered the door. I sat in one of the chairs across from Richard's desk as Richard took charge as always.

"Tim, on behalf of the three of us here now, we want to thank you personally for the work you have done for us thus far." We were hoping that you would eventually become what I knew you could, but I never dreamed you would have this much success this early, he began.

"First, the Jameson case and now the sale of the Gadden business assets. In both instances, we made money and, more importantly, retained our clients in the long haul. Not only did we retain Helen Jameson, the Gadden family, but now Charlie Miller has asked us to handle all his legal needs in the future," he continued.

"So, the three of us talked, and effective immediately, your salary is being bumped to one hundred forty-five thousand a year. Secondly, since you already have two clients, The Gadden's and the Gadden Machine Works, we must create the financial department. You will be given your floor and your staff. Is that ok with you?" he ended.

"Mr. Butler, I don't know what to say," I began.

"Don't say anything. Just keep working hard like you do, and everything will work out. We will work something out on the floor you get. Once we do that, you need to hire a staff," he stood up.

The three of us shook hands, and Jeremy Land thanked me again for putting the Gadden sale together. I walked to the elevator and got in, going down to my floor. I just went from making about sixty thousand a year to one hundred and forty-five thousand a year, and my weekly paycheck went from eight hundred dollars to about twenty-one hundred dollars a week.

I stepped off my floor and walked to my office just as Robin walked out of hers. I decided to confront her quickly.

"Robin, can I talk to you for a minute?" I asked.

"Oh, I have to," she started.

"It won't take long," I replied, walking into my office.

Robin had no choice but to follow me into one of the high-back chairs across from me. I decided not to confront her about the night we spent together immediately.

"I just wanted to thank you for the help you have given me here since I started. I just left a meeting with the partners, and they have agreed to start a financial division on a separate floor very soon," I stated.

"Wow, that's great, Tim. I assume you're going to get a staff as well?" Robin replied.

"Yes, they told me as soon as the floor is decided and everything gets moved, I will have to hire a few people," I replied.

"I can tell you that Richard is very pleased with your effort. He knows the long hours you put in and the weekends you spend here. Trust me, nothing happens here that Richard doesn't know about," she commented.

"That's the other thing I wanted to mention. How did anyone in this building find out we went to bed together that night at your condo." I asked, looking her straight in the eyes.

She immediately looked down at her hands and began rubbing them together. I knew she was about to lie to me, but I wanted to let her hang herself.

"I'm not sure. Maybe they guessed," she said softly, not looking up.

"Robin, I'm not going to make a big deal out of this, but there is no doubt you told somebody. I never spoke to anybody; the two of us were there. But I learned a valuable lesson, I guess, the hard way," I said calmly.

"Tim, I only mentioned it to one person about how," she began.

"Robin, forget it. What's done is done," I replied.


To be continued