I think it’s time to let Blue Diamond go, at least with the assets currently under review. The seller is too unreliable.
One of the things I’ve learned over the years, as I have mentioned before, is not to get too emotional about deals. The line from the movie “Wall Street” relayed from the great Gordon Gekko, “don’t get emotional about stocks Buddy.” Buddy, of course, played by Charlie Sheen. As bad as I want to do this deal and as much energy as I have extended, it’s a deal that needs to get done, but.
Over the course of the last 3 weeks, I have exchanged text messages with the seller about a follow up to our meeting regrding the sales price. I had to cancel our December 19th meeting and he was out of town Christmas week. I have sent him a couple of messages trying to get him scheduled but he is nonresponsive and doesn’t seem too motivated.
The good thing is I havent spent any money. I have no financial exposure. The thing is, to make this deal happen I would have to spend probably between $150,000 to $200,000 on due diligence and pre-closing items. If this deal were to fall out, I would have a big ass financial hole. I can’t take that risk. There is too much wrong with this deal to get emotional and make mistakes.
This would basically be a real estate transaction, initially. There are no historical financials to rely on. I would have to pay for a market study which is okay to get financing and the branding contract from Texaco but, I need cash flow at closing, not really 9 months down the road. Also, I would have to create the infrastructure, the systems to make this work. That would mean hiring staff and signing information systems contracts at least 30-45 days prior to closing. Those are huge commitments to make to be fucking around with a seller that doesn’t seem committed or doubts my ability to close.
The other thing, he hasn’t given me any information, zero. No surveys, no legal descriptions, zero. That’s some bullshit.
I gotta pass and start to look at other options. If he calls and wants to meet with me, I’ll meet with him and tell him about his lack of commitment. There is a good chance he won’t bring any data with him which I can point to, to make my point.
Time to move on. I’m confident I’ve done what I needed to do but it’s time to cut bait since we’re not fishing.