Succession Wars

I allocated Dad’s drawings to a capital account. For the non-accountants that means classifying his costs as paying for something of value (like inventory) or as a loan (which can be called in).

Once sorted and simplified, the number comes out to a $306K economic benefit over the last 12 months.

This morning he screamed on the phone that one of his credit cards was declined. Something inside me snapped and I told him to come to the office we need to talk.

Everything started ok. Actually it was going better than I expected. He challenged my calculations and allocations. I allowed that but said he’d have plenty of time to double check and correct any errors, but if my figures were right, he’d gotten a $300K benefit when our deal called for $125K. We had a problem and it needed immediate acion. He asked if I’d worked out my economic benefit($72K for the record). He just couldn’t see that the numbers came to $306K and if they did it wasn’t him.

Then I mentioned I’d given copies of the reports to his brother (and business partner). He lost it! Until then it was tense but civil (by his standards). He demanded I resign – I offered to if he paid out my company credit card expenses, plus $100K (my pay cut to take on this turnaround) and pays me a salary until that’s settled. He disrespectfully declined.

The only other option that I saw was to turn off the tap – cut him off totally. There wasn’t a lot of win-win focus at this point.

I believe that his drain on the company is the single greatest threat we face. I can’t see how I can deal with it and maintain a good relationship with my father if he cannot acknowledge reality.

One thought on “Succession Wars”

  1. G’day Paul,

    Might be time to call in the “secret weapon” !!!!!!

    Does Mum know about this? Surely she has an inkling, and would have a repertoire of tools for dealing with that particular intractable male …..

    Is it “time” to call for the cavalry ????

    Regards,

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