PLEASE HELP! DO WE PAY HIS MOBILE BILL?

By : Forum Member
Published 20th October 2017 |
Read latest comment - 11th November 2017

Hello! We are in the process of buying the company my husband currently works for in a share sale. The closing for the deal is jan 1st next year. Its a small company (4 employees) that the owner founded 30 years ago and has always run it to fund his lifestyle. EVERYTHING including his dogs, and their dog food have come out of the company finances. he has agreed within the sale agreement to clear all debts not pertaining to the day to day running of the company by jan 1st, BUT also wants us to keep him on in a "consultancy" role for a year after the sale for £500 a month - to sit at home and do some editing jobs (we print music) and be there incase theres any IT stuff we dont understand. 
HERES THE PROBLEM. on top of this £500 a month (basically 14.5 hrs a week) he is demanding we continue to pay for the home broadband he has currently through the company (its a business only supplier Woav) and his current sim only mobile. 
it amounts to about £50 a month. His exact words were "and of course you'll be keeping my internet and mobile on" - well no. I don't see any way in which this is reasonable, but unfortunately he is somewhat of a toxic personality and has bullied my husband into wanting to just pay him to avoid any further tantrums or unpleasantness....help give us some perspective! please!


highlandhost
Share this post, email or print
Comments

I know nothing about buying businesses, however this has red flags all over it for me. You don't sound like you really need him as a consultant and as for paying his broadband and mobile bill? Umm why? I assume you're happy with the price you're paying for the business to start with, as if he's been spending all the profits that doesn't sound great 

I really hope it works out for you but I don't think you should feel you need to pay him money to not be a pain.. . As I'm sure he will still be one! Just a pain on the payroll. 

I'm sure someone else will have better advice that's less instinct driven than mine. 


Thanks, Rebecca, Proofreader Extraordinaire
Anarchy is as detestable in grammar as it is in society. Maurice Druon.
Pay for Precision | Proofreading, copy-editing & copywriting.

Difficult 1 as he is working from home doing work for you..But when I was made redundant I was on the verge of signing up to 1 of these call centres where you work from home and I had to supply my own broadband, so it could go either way.Could you afford to do it as sometimes the expertise may well be worth the hassle to just give it to him as there may be times you really do need him and if you do he may need to help out of these times if you do instead of giving him over time  ..But would make a contract stating that and  after the year you stop paying ..Just my 2c worth   


I agree with Andy-C; if he is a slightly 'toxic personality' then it is probably best to keep him sweet. You could always put a time limit on it, so agree to his 'demands' but only for 6 or 12 months.

You need to work out in that time whether he is still of benefit to your business or not and then, if you decide not, upsetting him by cutting him off won't damage you or the business. 

Not an easy one - good luck!

 


Many thanks,
Natalie - Your Local Girl Friday
Who is Natalie? Ltd

I looked at buying a business that had been running for a long time and everything had come out of it to finance an equally opulent life style. I took the 'books' to an accountant who laughed at me and said that they should be paying me to take it off their hands!

The business owner also demanded to 'help' me during my first year because they too, basically because they didn't want to 'let their baby go'. 

Before you proceed any further, I suggest you take financial advice about the existing business and whether or not it will withstand the financial constraints that he is asking you to agree to. I know the professional accountants gave me this impartial advice free of charge, knowing that I may become a long term customer.

They also will not mind you saying 'my accountant has advised me...' if you ever have to confront or end the contract with the bully.

After the financial advice was given to me and the threat of  being given advice that I may or may not have wanted I walked away from the potential disaster.

I don't regret that decision for one moment.

I now have my own business that cost me less than 1/3 of the asking price for their failing one and that is growing steadily at a rate that I can control. I am not having to fight someone else's reputation.

Best of luck!!  Go with your gut feeling!


I agree with Izzy that gut feeling is so important! If I've ever ignored mine it's never gone well. 


Thanks, Rebecca, Proofreader Extraordinaire
Anarchy is as detestable in grammar as it is in society. Maurice Druon.
Pay for Precision | Proofreading, copy-editing & copywriting.

I've just re-read my post and the punctuation is rather bad ....Sorry


His exact words were "and of course you'll be keeping my internet and mobile on" - well no. I don't see any way in which this is reasonable, but unfortunately he is somewhat of a toxic personality and has bullied my husband into wanting to just pay him to avoid any further tantrums or unpleasantness....help give us some perspective! please!”
 

The bigger question is do you want to do business with someone you already know to be toxic and unpleasant?

Unless this is a unique and very niche, there are a multitude of opportunities out there.

Echo Izzy and make sure your opportunity is given the once over by an accountant. Better to find any skeletons now than have HMRC knocking at your door in 18 months time 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

Would love to know the outcome of this dilemma ..Can you let us know the outcome    


I agree Andy-C

Would love to know the outcome of this dilemma ..Can you let us know the outcome    ”