“I appreciate your concern but if you were bothered by all this, why didn’t you just talk to me?” I said. “I would have told you without hesitation. I have no problem discussing my life with you, you are the most understanding person I know.”
“Thank you for the compliments, I appreciate them, and I promise to be more forthcoming in the future,” he said. “So how is Sabastian? Did he get over his broken heart?”
“We both did,” I replied.
“Life is complicated, isn’t it?” he said.
“Yes, but I hear that it gets easier as you get older,” I replied.
“I’ve heard that too,” he joked.
Our drinks arrived and we ordered dinner before continuing. “So, what’s the mystery that had me leave a beautiful yacht in the Mediterranean to return home?” I said.
“I was wondering when you would get around to that,” he asked. “Well, I think that we have stumbled upon a treasure but I don’t know if you agree with me on its value or even if it interests you.”
“Please, go on. The suspense is killing me,” I replied.
“Well, here it is in a nutshell,” he said. “The firm is helping settle an estate after a wealthy speculator died about six months ago, leaving everything to his wife and young daughter. The wife is not interested in maintaining certain of the businesses and the daughter is too young to get directly involved so it has been decided to sell off the less-than-substantial, or underperforming holdings to focus on the core investments. One of the businesses that will be sold off is a yacht brokerage and management operation that the deceased acquired as collateral for a loan that fell into arrears and was used to settle the debt years ago. He became a silent partner and kept it as long as he received some income from it but lately it has not been performing well, mainly because of poor, or dismal, management on the part of an aging manager uninterested in running a business any longer. I saw an opportunity here since you seem to like the yacht business and, if you are interested in really working for a living, it could become a good asset. I spoke to the wife whom I have known for a while, and she said that if I were truly interested, we could discuss terms where she would sell a 50% stake to me and hold the note for five years with no money upfront. At that point, we could decide if it is worth maintaining the relationship or simply selling the business. Of course, there are a lot of details to be worked out, but I wanted to talk to you to see if you were interested in working for yourself. What do you think?”
“On the surface, it sounds good, but I have a couple of questions,” I said. “First, what is the amount of the cash flow each year and would it be adequate to cover the note and pay all necessary operating expenses? Second, where is the business located? Is it in Miami” I asked.
“The business did very well for itself for quite a few years,” he said, “but, as I mentioned, the manager lost interest and it has gone downhill. I believe that with fresh blood coming in, it could be brought back to where it should be and the income would be more than adequate to cover everything. As for the location, I think you will be happy to hear that it is in the heart of the luxury yacht market, Monaco. I know how fond you are of Miami but Monaco is not too shabby and there may even be some American restaurants for your delicate palate. As I said, I saw an opportunity here and if you are interested in some hard work you could do very well.”
“It is very interesting but even with a note, I don’t think that I have the funds to cover startup costs let alone operating expenses for the first year. This will not be an inexpensive proposition by any means,” I replied.
“You’re right but I have a solution to the problem,” he said. “I cannot run another business but I want a future for you, so I am prepared to go over the figures with you and put together a business plan. I will fund the start-up and cover operating expenses for the first year up to a total of $1 million. This is not a gift but will be a loan at 1% per year for ten years, with a single balloon payment at the end of the term. If all goes well, and I believe that it will if you run it right, you will pay off the acquisition note in five years, and then have an additional five years to accumulate the funds to pay off the start-up loan. Bottom line, in ten years you could own your own business in one of the most beautiful places in the world and may even be able to afford one of those boats you sell.”
“Dad, I don’t know what to say,” I replied, “this is so much to take in all at once. My initial reaction is to jump at the opportunity, but I don’t want to be hasty and make a mistake that I will be sorry for later. I appreciate what you would be doing for me, but I don’t want to risk your hard-earned money in a venture that could fail.”
“Every opportunity comes with a certain amount of risk,” he said. “I looked at the business and feel that the risk/reward ratio is sound. I also know you. The fact that you are concerned about risking my money shows me that you are the right person to invest in. If you give it your best effort and don’t succeed, you will have learned lessons that will help you succeed next time. I will be around if you need help or advice so don’t be timid. Dream big!”
“Okay, I understand,” I replied. “Let me sleep on it and I will talk to you in the morning.”
“Fine, but I promised an answer tomorrow and there are details to sort out if we go forward,” he said before taking a long sip of his drink.
The rest of the dinner conversation was good-natured fun stuff and talk about my trek and the time on the boat before arriving in Rome. Since I had a long day, we had an early night and agreed to talk in the morning. Lying in bed my head spun as I thought about the future and the possibilities stirred the butterflies in my stomach just like the sound of Sebastian’s voice.
(To Be Continued)