Paul Thomson: Walker Insurance
After a year of searching, Paul Thomson has attained his goal of owning his own business. Walker, the prior owner has facilitated transition, but remains involved in the company and employees are looking to Paul for leadership. He takes immediate steps to build morale, replace poor performers in the "producer" sales force, cut wages and expenses. During a post closing audit, Thomson discovers a $600k problem that wipes out his contingency funds. He is concerned about having to go back to his investors to fund a build up of reserves this early in his tenure. If he plans to live off cash flow, his growth goals will be delayed and he may lose some recently hired revenue "producers". He has also been approached about selling the company for $4 million, which could yield a good return for investors and for him personally. Having just acquired Walker Insurance, Paul Thomson finds himself short of funds to support his original growth plan. He can request additional funding from his investor group, hunker down and grow at a slower rate or consider a proposal to buy his business. The transition from the old owner is complete and he has taken steps to re-virtualize the company under his leadership.