A Great Fun Success Story. Break Even, It Happens!

Prologue. Detroit National Bank had arranged and financed the purchase of Heath Tree Service. Nelson’s largest purchase The company had been a subsidiary of a large bankrupt conglomerate. The bank being the major creditor was trying to liquidate the assets. The bank president had located Nelson Tree Service; after a few meetings in Detroit, he made Nelson a great deal. A few months later he called again, this time he asked me to purchase another subsidiary, a Bombardier Inc. franchise. This company. had the exclusive right to sell their logging, timber, heavy equipment as well as ski equipment in eight states, Mississippi to Minnesota. I think because of our prior dealings and his desperate need to liquidate he made me an unbelievable deal! I would pay one dollar. I would have no risk. He would take a lien on the equipment and provide all the working capital. The company had a manager and three employees and a warehouse and equipment yard north of Detroit. (When we close the deal, he took me and my lawyer to lunch at the famous Mantua Red Fox. After lunch, at 1 o’clock, we went to our cars in the parking lot.. And hour later we heard on the radio that Jimmy Hoffa the famous union leader had gone missing at 1 o’clock in the same parking lot. To this day they’ve never found his body) I operated the company for about five years Unsuccessfully! But the best of fun times and a very surprisingly a happy ending!

A). Fun Times. I would go to Montréal 2 to 3 times a year for three or four days. Carol and I went a number of times in the winter. Stayed at the best hotel, with first-class restaurant bar; In the winter the women and men wore magnificent fur coats; the best French food. Side trips, skiing in the Laurentian mountains. Best of all being entertained by bombardier staff. Would go to manufacturing site south towards Maine at Sherbrooke Québec. There they were making the heavy equipment and their famous SKidoo, snowmobiles. These were the "bad times". The French were almost at war with the rest of Canada. In Sherbrooke we had a Englishman as our "handler". All English-speaking customers dealt with him; great entertainer. In Montréal in a restaurant if you spoke English you would be shunned. But that if you said in a loud voice "hope the children back in Washington are okay" the waiters would be friendly, everyone would be happy. Most importantly I got to know the company treasure, Paul LaRose. Back then Bombardier was not the giant company it is today. Delightful chap. Every time I came, after work we would, enjoy Montréal., I would buy dinner, $100 bottles of wine and sometimes nearly freeze to death ,2° below, going from bar to bar.This served me well!

B). Break Even. Finally, I had enough. There was a recession in the logging industry. We could not sell any equipment. I knew the Detroit bank was getting impatient. Bombardier announced that it had purchased a similar franchise for the same equipment covering eight states from Maine to Maryland. I called up Paul LaRose and ask for a meeting. January. As usual I took him to dinner, two bottles of wine etc. I then said that my franchise was only breaking even. I asked if I could purchase the franchise they had just acquired on the US East Coast.I suggested that the combination might be profitable. Both quite crocked! He said I'll go to the Board of Directors and get back to you next week. He called me next week and said (How could have I guessed?) "Fred, I have bad news, The Board has rejected your offer, but would like to purchase your franchise and combine it with our’s" Off the hook! I was paid one dollar, after the Detroit bank got all of its money back. Sometimes the best business results are a Break Even!