Stupid Boy Senior Year Winter 16

Chapter 16 -- Change is Good, Right?

Friday December 30

The plan for the day was to go to my company's office and get updated on how everything was going. Since the meeting was scheduled for first thing, I talked my grandma into going to Granny's West for breakfast. I'd spent the night in her guest room because my uncle had used my apartment.

Before I left, I called Chuck.

"Where are you? I'm supposed to pick you up this morning."

"I'm at my grandmother's farm. She'll be giving me a ride this morning to our office, and I'll be there most of the day. I need you to go to O'Hare and pick up Fritz, Halle, and Rita," I explained.

Halle had told me what flight they would be on. Chuck agreed but still gave me grief for slipping my leash. When they dropped me off at night, I was supposed to stay home. For the most part, I agreed with what they told me, but sometimes I just needed them not be breathing down my neck.

When we arrived at Granny's West, I found there was a crowd of unexpected guests. Bev and Jack Mass had come down from Chicago, and Frank Ingram and Kent Crain were in from LA. At another table was Brook with her mom and grandmother.

"Mind if we join you?" I asked Brook's mother, Ava.

At first, couldn't remember Brook's grandmother's name, which I was reminded was Grace Davenport. After we'd made introductions, I got up and walked around to say good morning to everyone. When I came back, I saw that they'd brought everyone a cinnamon roll.

"What brings you ladies out this fine morning?" I asked between mouthfuls of yummy goodness.

"We are special guests at your meeting today," Brook informed me.

Brook had taken an interest in my businesses. She'd come up with the idea of expanding our talent management, PR services, and investment management businesses into a combined wealth management offering. She'd introduced that to her grandmother, who had then become our first client. I hoped she would let us know what she thought today and how we could improve our offerings.

"I'm eager to hear how everything is going for you," I said to Grace.

"It's gone well. I'll save the details for the meeting," she said.

Ava told Grace that my grandmother was acting as the mayor of our town, and the three of them talked about what Grandma was doing. That gave Brook and me a chance to speak.

"Halle said she would be in today for your party."

"She and her mom are staying with us. She said you promised her ... stuff," she said cryptically so the big ears sitting next to us wouldn't hear.

"What 'stuff'?" Ava asked.

Brook had opened her big mouth, so I wasn't about to bail her out. She should have known that the three of them had 'mom ears' and would pick up on what she was saying to me. My girlfriend looked at me for help, and I put on my best little angel face.

"I think David called it bow-chicka-bow-wow," my grandmother said to toss me back into the middle of it.

"Hey!" I complained. "What's the Dawson Rule?"

"There is no 'Dawson Rule,'" Grandma Dawson shot back.

"Well ... there should be," I said as I glared at her like a put-out teen.

"Is this young man corrupting my granddaughter?" Grace asked with a mock scowl.

"Oh, Honey, don't get me started. My youngest was a little Casanova when he was David's age. From what I gather, my grandsons take after him."

Where was my mom when I needed her? Then again, I probably didn't want her involved in a conversation like this. I knew my dad and uncle would be no help.

"This one," Grace said, pointing at Ava, "caused most of these gray hairs."

"Mother," Ava warned.

"Oh, really? Do tell," Brook said, digging for dirt.

Brook and I got lucky because it turned into telling stories about my dad and uncle and Grace's kids. I smiled as both my girlfriend and I made mental notes of some of the trouble they got into. By the time we finished eating, I had figured I had a couple new 'get out of jail free' cards in my back pocket.

---

I groaned when Caryn handed me the agenda, and I saw that they had allotted three hours for the business overview. I was afraid this was three hours I would never get back. I knew in my gut that I should really be involved in all this, but I just couldn't seem to get excited about it. This was something that should be happening later in my life. Right now, I had too much going on, and a big chunk of the stuff in which I was involved had nothing to do with just being a kid in high school. This was a reminder that people relied on what I did and the money I earned, and that's an uncomfortable burden for a high schooler. If a lot of the people in the room hadn't been my family, I might have bailed.

I asked all of you here today not just to conduct a year-end review of the businesses but also because I've been approached with an unexpected offer. Just so you all know, Rob and I haven't discussed this with David. We didn't because he asked us not to bother him with the business," Caryn said, which caused some good-natured chuckles from everyone.

It sounded like I might have said that one too many times. Caryn could have her fun. Payback might be headed her way.

"That, and," she continued, "we just received this offer two days ago. The real reason was that we've been requested to allow the person making the offer make their pitch to David and the board directly. Rob suggested that we include everyone involved in the day-to-day management so they could hear this too."

That would explain why Kent had been asked to fly in. He effectively ran my talent management company with Frank's oversight. Frank was a managing partner of our PR firm, while Jack and Bev Mass ran the investment arm of our business.

Megan handed everyone an organizational chart of all the businesses for reference. Then Grace Davenport stepped up to the front of the room, and Caryn introduced her. She took a moment to go over her credentials as the driving force behind many successful retail and home-goods brands. Grace had made their parent company one of the fastest-growing companies in the '90s. It had made Brook's family very wealthy.

If Grace had a proposal for me, I had to listen. This woman was a legend in the business world, even if she had recently relinquished control of her company to her management team.

What impressed me the most about her was that we'd just had breakfast and had a conversation that was far from what you would expect from the chairman of a huge corporation. She seemed comfortable being a normal person when she was with her daughter and granddaughter. When she took the front of a room, the business persona came forward.

"I know you have a full agenda planned for today, so I'll just get to the point. I think you've found a unique niche in the wealth management market. What I hate about most wealth management companies is that they cater to institutional clients like state employee retirement funds or large corporations. If you look at their list of clients, you'll see that big institutional clients account for the majority of their revenues.

"What you offer is much more personalized. It covers all aspects of financial management that wealthy people genuinely need, and not just people in the entertainment industry. Potentially, and in some cases actually, it also covers virtually all non-financial aspects of personal management as well, with personal and public relations services being the prime examples. I hadn't thought about the gaps in services I had until my granddaughter came to me with what you had to offer. I've been using the services for the past few months and find the business model intriguing.

"My hat is off to you all for taking your business to this point. What I'm going to propose is that we take this to a whole new level with my help. To be frank, I don't think David has the desire to take the reins and drive this business to its full potential right now. Maybe in ten or fifteen years, he will have the background and time to take this on, but not right now," she said and turned to me.

"This isn't meant as a slam on you personally, David," Grace said. "I understand why everyone partnered with you. You were their cash cow. In effect, you offered them an opportunity to work independently, with your father and Caryn acting as traffic cops and keeping everything balanced and in perspective.

"I'm going to be brutally honest with you. You, as the owner, have not been keeping an eye on things. Not that anyone has done anything wrong or taken advantage of you, but I know from experience that someone with your leadership skills would make a difference. You need someone to take that role to move the company to the next level.

"I also understand why you haven't been actively involved. You felt if you threw money at it and put the right people in charge that it would take care of itself. You have too much else occupying your time to run a successful company. To this point, you've been lucky, and from what I can see from the numbers that Caryn shared with me, it has grown faster than expected. That in and of itself will eventually catch other people's attention, and not necessarily in a good way. It won't be long before your business model is hijacked by someone who is better prepared to take advantage of it.

"Eventually, inattention on your part and the lack of a steady hand on the reins will almost certainly result in something bad happening. It will be something that you really don't want or like, and it will occur somewhere down the line, though perhaps not for years. As I said, I'm being blunt. But I've also seen it happen, and the effects, both personal and financial, can range from troubling, to significant, to severe, all the way up to devastating.

"Finally, rapid growth is good, but only if you know how to manage it. Too many times, a small company like yours can't keep up and maintain quality when it starts to take off. That is something I specialize in," she said.

I was a little offended she referred to us as a 'little' company. But when you looked at her parent companies' yearly revenues--in the range of multi-billions of dollars--we were little by comparison.

"What exactly are you proposing?" I asked.

She had Ava hand out folders.

"Currently, David A. Dawson Inc. is the parent company that is running everything, with ownership interests in Mass Investments and IDC Public Relations. It also owns 100% of Dawson Management. I understand that you are in negotiations to purchase an ownership interest in an insurance brokerage. What I would need is a fifty-one percent ownership position in all these companies."

Grace went on for about an hour explaining what it all would mean and what she projected over the next several years. What had my full interest were three things. The first was that Caryn, my dad, Frank Ingram, and Jack Mass all seemed to see the benefits to her proposal. If she pulled it off, we would all be in much better financial shape than anything we'd ever dreamed of when we started this venture.

The second item of interest was that David A. Dawson, Inc. would divest itself of any interest in the farms, restaurants, my mom's real estate company, and ownership of the strip mall. In exchange, the parent company would get 51% of Dawson Management. Grace explained those other pieces didn't fit the core business. She would help me set up a new management company to run those. She would then run David A. Dawson, Inc., and my new management company would be left with a minority interest plus those divested entities.

The final reason I was interested was precisely what she said: I didn't want to be involved in building a business empire right now. This would allow someone with the know-how to take the reins and relieve me of a lot of the worries that I'd kept shoving to the back of my mind. The problem had always been that those worries were still there, even if I didn't keep them in my conscious thoughts.

To be honest, I would still own what I really cared about: the farms, the restaurants, and my mom's real estate company. As to the rest, I would wind up being an interested investor.

We took a break, and I pulled Caryn, Dad and Mom, Uncle John, and Grandma Dawson together in a conference room. I guess I wasn't surprised when Brook and Scarlet joined us.

"I have a feeling this is a big deal, and I might not want to sell. If Grace sees the value in what we are doing, are we crazy to let it go?" I asked.

"He makes a good point. My grandmother wouldn't have worked on this if there wasn't something in it for her. I'm actually a little surprised she didn't just start from scratch and do it herself," Brook shared.

"That was good. You should be in sales," my mom said. "She just subtly did a takeaway where she pointed out that her grandmother didn't need us."

"I wasn't trying to do that," Brook said. "I was just sharing what I know to help."

"Ignore my mom. She's just giving you a hard time while pointing out why that technique works. It makes me wonder what I'm missing out on if I do this," I explained to my girlfriend. "What do you think, Dad?"

"You'll still have a 9% ownership interest in the parent company. If the projections are even half of what she is proposing, 9% ten years in the future is worth more than 60% ownership of what we were projecting we'd have by that time in our wildest dreams. I also look at what she did by giving you back the other businesses as more than generous," Dad said.

"Also left to me were both the charities--which will need new management to run them--and David A. Dawson LLC," I said.

This was the limited liability company I ran all my acting and modeling income through.

"The only fly in the ointment, so to speak, is that she plans to move the company to Cincinnati, where she lives. I was surprised when she said that Ava would be moving there and help run the company," Scarlet added.

I wondered what that meant for Brook's parents. She wouldn't look at me, so my first thought was that whatever it meant wasn't necessarily that great for Brook on a personal level. It also made me wonder about Scarlet, Caryn, and Megan. Would they make the move? In particular, I wondered what it would mean for Scarlet. One of my goals was to spend more time with my kids, and if she moved, she would take Carol. I also worried about Ashley deciding to move with her. They were much closer to each other than they were to me. Frankly, with the news of the income from their trust funds being released to them, they didn't need me.

My uncle had been silent throughout this conversation, which surprised me. I turned to look at him and saw him sitting there with a sideways smile on his face as he observed me. I hated it when he did that. When I was exiled to the farm, and he helped turn my life around, I would catch him doing just that when he thought I was on the verge of making a breakthrough.

"Change is good, right?" he asked.

I wanted to roll my eyes at him. I'd heard those words before. It was when I was exasperated by his continued attempts to hammer home the point that I wanted to change my life but didn't want to admit it. What teen wants to do that with an authority figure pointing it out to them? I'd learned he knew me well enough to push my buttons and finally get me to move forward.

I took another moment to think before I committed. Our family had been running farms since my grandfather's younger days. I knew that Uncle John and my grandmother didn't need me to be involved in any of that. My mom took care of the real estate, and I could count on Mary Dole and Granny to run the two restaurants. I would have to find people to run the charities, but in the grand scheme of things, that wasn't all that big of a deal. Angie had been the only one who had needed an income, and I'd promised my brother I would find something else for her to do.

This would solve my biggest issue. I didn't want to run a business ... yet.

"Okay. Let's consider this," I said.

From the looks from everyone, it seemed I'd made the right decision.

"Can David come out to play?" Brook asked.

God, I loved her. The look on my mom's face was worth it. I would leave it to everyone else to figure out the details with Brook's grandmother.

---

We found Cassidy at the front door.

"Someone sent their security to Chicago this morning," she chastised me.

"Let's go to lunch," I suggested.

"Monical's?" Cassidy asked.

"If you want to," Brook said to tease me.

Of course, I wanted to.

Once we arrived and sat in a booth, I felt I was home. We ordered a Family Pleaser, which came with a family-size salad, a large pizza, and a pitcher of soda. Brook wanted pepperoni and Diet Coke. I was just happy we were here, so I didn't argue.

"What are you going to do with all your money?" Brook asked.

"What money?"

"Did you even read the offer?"

I hated to admit that I hadn't. This was probably why I wasn't cut out to run a company right now. I felt a little stupid when Brook pulled it out of the giant bag she called a purse. She flipped through to the last page and pointed.

"Why didn't she lead with this?" I asked.

They were offering me ten equal payments each year, starting as soon as I signed, and then a balloon payment in the last. The note said that with it structured this way, they could use the money to help build the business. Brook's grandmother guaranteed the loan in case the company wasn't able to fulfill it. The payments were, uh, substantial. I suddenly felt like one of those tech guys who had sold a start-up and retired before the age of thirty.

Cassidy had been reading it along with me.

"If I show this to my dad, he'll let you date me," she suggested.

"Hands off," Brook said as she shot her friend an affable scowl.

"If your mom moves to Cincinnati, what's your dad going to do?" I asked my girlfriend.

"He's staying here until I graduate high school and then they'll see. I just found out about it this morning," Brook said to explain why she hadn't told me about it.

"Are you okay?" I asked.

"That my parents look like they're breaking up?" she asked.

"When you put it that way ..." I let hang and then took a deep breath. "They did say there was a chance, though."

"I guess. Mom said she looked at this as a way to find out what she really wanted. Dad said that things couldn't get much worse, but he was willing to give her the space and time to figure out what she wanted. My grandmother has always tried to get my mom to be more involved in her business. I think she looks at this startup as a way to pass her knowledge on to my mom," Brook explained.

"Are you going to do it? Are you going to sell your business?" Cassidy asked.

"I think I need to. I see Grace's point about me not wanting to be involved in running it and what the consequences could be. Someone like her could give it the vision and experience to do more. I could see from everyone else they were eager to accept it. I'm just not interested in giving it the attention it needs.

"One of my life goals is to learn to say 'no.' Learning that lesson is more than just saying the words. You have to know what you want to take on and be honest about what you don't. Kent came to me with the idea of the management company. I could see what he did for me, and could see the value of him spreading his wings and offering the services to others.

"Caryn pointed out that in business, you should look at different income streams and try to pull them together. It's sort of like my mom's real estate business. Listing and selling houses is her core business. She works with investors, so she took on doing rentals--another source of income. Rentals and some of her listings need lawn care, repairs, and the like. So, you can see why I accepted when Frank Ingram, with his PR firm, and Jack Mass, investments, wanted to partner with me," I explained.