Return to Paris
It was almost one year to the day of my initiation into the Freyja Club that I learned that the potential acquisition we had been pursuing in France was now seriously re-considering our offer.
I had been on an Air France red-eye flight out of La Guardia a year previously and was in pursuit of this very company when a mysterious invitation appeared on my seat at about 3 a.m. which introduced me to the existence of the Freyja Club. To say that it was a life-changing event would be a gross understatement.
The Freyja Club was founded in the mid-1890s in London by a group of men (and a few women) as an exclusive retreat from the stifling sexual repression of the Victorian Age when social conventions made discussion of sex and sexuality taboo. This sexual puritanism drove sex underground. Women were personified sexual objects and as a result, the club adopted a unique code of conduct. While in the Freyja Club, all females, be they staff or guests, are required to be nude, but there is no such rule for men.
Over the years, the Freyja Club expanded to its current twenty locations around the world. Most are located in Financial Centers like New York, Paris, and Geneva, but there are a few in exotic destinations such as Miami, Los Angeles, and Monte Carlo. The nearest one to me happens to be in Washington D.C. and it's somewhat unique in that Washington's stock-in-trade is political power rather than monetary power.
During my visit to Paris the year previously, I became aware that there were warring factions in the company that we were interested in acquiring. This isn't particularly unusual, especially in privately owned enterprises that are now in their third or fourth generation of ownership. There always seems to be a small group that wants to maintain the 'family business,' and a larger group that wants to 'cash out.' The fact that I was now on my way back to Paris to resume negotiations told me that the 'cash out' folks had won.
As I mentioned, I had originally been initiated into the Freyja Club in Paris and the prospect of seeing Danielle du Val, the club's Managing Director again was a most pleasant thought, but just in case I made a Trans-Atlantic call from my home phone.
Freyja Clubs only have one incoming phone line and I've deduced that this is one of the ways that they have remained largely anonymous for almost ninety years.
The phone was answered on the first ring by a female voice. "Bonjour, eff-cee." When I introduced myself the voice responded in accented English, "How may I be of help?" I explained who I was and asked if it was possible to speak with Mme. du Val. Two minutes later I heard Danielle's
voice.
"This is a nice surprise, I was just thinking about you. I was just reviewing the list of the new members we initiated this year and, of course, your name was on the list. It brought back a most pleasant memory and I wondered how you're doing."
For the next two hours we talked like long lost friends which, to a degree, I guessed we were. I told her about my obsession with learning about how the club operated and had been able to survive as long as it had. I told her about my experiences in the clubs in New York, Miami, Tokyo and, of course, Washington and some of the interesting stories I'd heard, but mostly lived, and how those experiences had led me to begin to chronicle my journey. Danielle listened attentively, but warned me about being 'too curious.'
When I finally got to the point of the call, that I would be back in Paris the following week, Danielle squealed with joy and insisted that she and her husband Phillipe take me to dinner when I arrived. That sounded good to me. I had been most impressed by Danielle and Phillipe and was more than interested in building a friendship with this fascinating couple.
For a lot of practical reasons, most Teans-Atlantic flights between North America and Europe are red-eyes. So three days later, I landed at de Gaulle at seven a.m. In the morning local time and was met by Vincent Martell who was one of the accountants that we had retained to be part of our acquisition team.
Because we would be using one of the hotel conference rooms for our base of operations it made it impossible to consider staying at the Freyja Club. Such are the constraints imposed by travel for business as opposed to travel for pleasure.
It was about a thirty-minute ride to the Hôtel Barrière, a Grand Hôtel which is located in the village of Enghien-les-bains, a Paris suburb in the northwest quadrant of the city. The five-star hotel sits next to a thousand-acre lake and is less than a block from the casino that bears the same name. I doubted that I would be visiting there, but we'd see.
It was way too early to call the Freyja Club and finalize plans for the evening get-together with Danielle and Phillipe, so I checked in and inquired if I had any messages - there were none. I took a quick shower and an abbreviated look at the complimentary copy of the European edition of USAToday, dressed in a charcoal business suit, and left to meet our acquisition team in one of the meeting rooms on the second level of the hotel.
When I got to the meeting room, I was surprised to find three people instead of the two I had expected. Vincent introduced me to his associate Tomas, who would be the legal liaison with the lawyers when we got to that point, but he then turned and introduced me to Raul. It turned out that Raul had been a classmate of Vincent at the National University, and like him was an accountant, but just not any accountant. Until two years ago he had worked for our target company.
Whenever we evaluate the "fit" of a prospective acquisition, we always try to find a way to get some insider information. There are a lot of ways to do this; some are legal and some are not, others may be technically "legal," but are as immoral as hell. My rule is simple; it can't be illegal or immoral.
Raul had left the company on his own volition and he assured us that he wasn't bound by any non-disclosure agreements. He was the perfect "insider" for our purposes. Of course, I knew that we would be paying him for his time and information. We quickly agreed on a per diem for his time, but all information didn't have the same value. I told Raul we would pay for information, but he'd have to trust me to be fair about how much it was worth.
Raul had a short conversation with Vincent, which I was certain could be paraphrased as "Can I trust this guy?" When Raul turned back to me we shook hands and I guessed we had a deal.
I wanted to discuss the two pages of questions that I'd written down from the review that we'd already conducted, but I've found through experience that the most valuable information is often something you've never even thought to ask about. So, for the next three hours, I had Raul just talk without providing any structure.
It was enlightening, to say the least. Not only did he seem to have an excellent memory for detail he also was able to provide some insight about the people that I would eventually be sitting down with at the negotiating table. I was so impressed that I went back to my room and opened the small safe that was located there.
At the time the Franc exchange rate was ff4.5 to the dollar, so I peeled off five one thousand Franc notes, relocked the safe, and returned to the meeting room. When I laid the money, in front of Raul, his eyes got big and he couldn't stop saying "Merci."