Chapter 7 - The Mitchell investment
George’s interest in Carter Site Systems began professionally.
Mitchell Development used Ethan’s company on two projects.
Good work.
Then George proposed investment.
Mitchell Development wanted an in-house safety-consulting subsidiary.
Instead of building from scratch, George suggested acquiring a controlling interest in Carter Site Systems while keeping Ethan and Malik as operating leaders.
Initial proposal:
Mitchell invests $750,000.
Receives forty-nine percent newly issued ownership.
Ethan and Malik retain substantial equity.
My twelve-percent stake dilutes, but I receive proportional rights and potential cash consideration depending structure.
Nothing obviously predatory.
Malik liked the access to bigger clients.
Ethan liked growth.
I said:
“Get independent lawyers.”
Ethan laughed.
“We have lawyers.”
“I mean lawyers George doesn’t pick.”
He did.
Good.
The first term sheet changed.
Several provisions removed.
Valuation improved.
No deal yet.
Then the relationship between Ethan and Vanessa complicated business negotiations.
George started describing the investment as:
“Keeping opportunity in the family.”
I hated that phrase.
Ethan said:
“Mom, don’t turn everything into suspicion.”
I replied:
“Then don’t turn business into Thanksgiving.”
That was one of our fights.
I admit I became suspicious early partly because I disliked how quickly Vanessa occupied every part of Ethan’s life.
Personal dislike can contaminate good business instincts.
May you like
So I stepped back.
For a while.
