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You can imagine that Brandon and Jim hurried to calculate the selling price. Yes, they still intend to sell the company. They need the money to improve UniCo’s credit rating.

To estimate how much we can sell I Cosmetics for, we used a profit/earnings ratio of seven. The value of the company came out to be about two hundred and fifty million dollars! No wonder, a remarkable jump in profits causes a remarkable jump in value.

Brandon was quick to point out that there is no way we will get this amount. Not when profits are based on forecast rather than hard numbers from past history. But he thought we could shoot for one hundred and fifty million. What a change. They were praying to get this sum of money for all the diversified group. Now they want it from just Bob’s company alone.

At that stage I was ready to move on the issue of Stacey’s company. The negotiations with Pressure-Steam’s competitors are moving at a snail’s pace. A snail’s pace compared to what Trumann and Doughty want to see; an express train relative to what I want. At the current rate they have a good chance of signing the deal before the end of the year.

So I just speculated what would happen if Stacey develops an equivalent competitive edge in her field and starts to eat into the competitor’s market share. They were quick to realize that it would be like sticking dynamite in the competitors’ behind. It would also enable us to ask for a higher price. It was easy to squeeze a promise that they’ll freeze negotiations for the next six weeks. Right now they have more confidence than I do in our ability to rapidly develop a competitive edge for Pressure-Steam.

Once I knew that I’d won this battle, I moved on to my next objective. I reminded them of their estimate of the amount that we can get for Bob’s company, and declared that we can get much more, that we’re going about it in the wrong way. They were not surprised. I don’t think that I can surprise them anymore, whatever I claim. Anyhow, I laid on them the realization that I learned from Dave. You know, why are we putting ourselves in the trap of evaluating the company through its financial performance. We should evaluate it in relation to the benefits a buyer can get by acquiring it. And these benefits are not restricted to only the direct profits that can be made by the purchased company.

We discussed the concept of selling our companies as models of excellence, as catalysts to raise the performance of a much larger company. Initially it was hard for them to accept, but when I switched focus to Pete’s company, to the printing business, it was much easier for them.

The last three hours we spent attempting to construct a presentation for big prospects in the printing industry. Even though it was very helpful in bringing Jim and Brandon to buy into the idea, I didn’t like the results. It is not a good presentation, not at all. I will have to teach them how to construct a Transition Tree. This is the only way we can smoothly deliver such a complicated message. We scheduled a weekend two weeks from now at a resort area. We are going to try to bring our families, too.

Should I tell them then that in this meeting I was following a Transition Tree? That would be a bad idea, they might feel manipulated.

I’m going over what I achieved with them. I gained enough time for Stacey’s company. Bob’s company will not be sold for the next four months. In the meantime, we are going to prepare a dazzling presentation for the printing industry. Then we’ll be ready to concentrate on cementing the deal on Pete’s company.

By the way, we intend to sell Pete’s company for more than one hundred million. That’s their number. I think that if our presentation is really good, we can get close to two. We’ll see.

Not bad. Not bad at all considering where I was less than three months ago, when the board’s resolution hit me like a ton of bricks.

Now I am on my way to visit Stacey. Don will meet me at the airport, and