Chapter 10 - Charles Had Nearly Made His Own Mistake by Trying to Save Me
Dad attended none of the Mercer board meetings after withdrawing his:
term sheet.
Good.
He was no longer the investor.
He did not get to direct:
them.
At first, I wanted him to.
“Can’t you force them to remove Ryan?”
“No.”
“You could buy the debt.”
“I could.”
“Then?”
“Then I would be using your divorce to acquire leverage over your husband’s company.”
I hated when he was:
right.
Then he admitted something uncomfortable.
His original $8.5 million proposal was a real investment, but he had pushed his team to move faster than they preferred.
Why?
Because of:
me.
“You asked me to look at the company.”
“That’s different.”
“I also knew your marriage was under stress.”
“What does that have to do with underwriting?”
“Exactly.”
Dad’s investment committee had already flagged:
three concerns
before the dining-room scene.
Related-party payments.
Weak cash controls.
Inconsistent supplier balances.
His team recommended delaying closing by at least:
two weeks.
Dad wanted to close sooner because he thought stabilizing the company might reduce pressure on my:
marriage.
That was his blind spot.
He was preparing to solve a family problem with:
capital.
Then he handed me the internal memo prepared the afternoon before Diane’s dinner.
Recommendation: Do not fund until spousal collateral consent, Bishop Advisory fee and shareholder-loan priority are independently verified.
He had already decided not to transfer money the next morning unless those issues were:
resolved.
“So when you walked in and said you were out…”
“I was angry.”
“Was it business or personal?”
“Both.”
Not perfect.
Honest.
“I saw how Ryan and Diane were treating you, and it confirmed something my team was already telling me.”
“What?”
“They thought governance was the real problem.”
Then Dad said:
“I should not have slapped Ryan.”
I looked at him.
I had not expected:
that.
“He walked toward me like he owned the room.”
“That’s not a legal defense.”
“No.”
He had acted in:
anger.
No injury.
Still unnecessary once no immediate threat existed.
Dad did not call it justice.
Good.
Then Mercer’s restructuring reached a decision.
The lender would extend the standstill if the company:
1. retained the independent restructuring officer,
2. suspended related-party payments,
3. pursued either a recapitalization or sale of selected assets,
4. removed Ryan from control of cash,
5. appointed an independent board chair.
Ryan refused to resign voluntarily.
The board removed him as:
CEO.
He remained a shareholder.
Diane lost the chair vote the same:
day.
Neither became poor.
Neither lost legal ownership instantly.
They lost managerial:
control.
Then the restructuring officer began contacting potential buyers.
Dad’s firm was asked whether it wanted to bid.
He declined.
I asked:
“Why?”
“Because if I buy your husband’s company during your divorce, every good decision afterward will look like revenge.”
That was the correct:
choice.
Three independent strategic buyers entered:
diligence.
One wanted only the hospitality-contract division.
Another wanted the brand and factory but would close most showrooms.
The third proposed buying the operating company, assuming certain supplier obligations and retaining roughly 150 of 180 employees.
Not perfect.
Potentially viable.
Then the buyer discovered one final contract that could reduce the purchase price substantially.
Ryan had promised Lauren’s company a $400,000 termination fee if he lost executive control before the rescue financing closed.
May you like
He had written his affair partner a financial parachute from a company that could barely pay upholsterers.
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