In life, you must often lose a lot to learn the value of some things. Some people lose loves, others loose vision, some even lose parts of them and in each instance, a sudden appreciation develops for that which was lost
Darian Synder was no stranger to loss but the appreciation of what was lost came to him late. At the age of 5 he lost both of his parents in a car accident forcing him to move in with his grandfather, Myron Synder, only to lose him as well at the age of 16, which was somehow more devastating to him than the loss of his parents. And then, as if his life was a tragic Greek play, he watched his uncle die of suicide at the ripe age of 23.
Darian wasn't close to his uncle, so his death was neither as impactful as the loss of his parents or as devastating as the loss of grandfather, but it was the first time he truly understood how important his uncle was to his life and the impact his death would have on him from that moment forward.
Darian's uncle was Micah Synder, age 56 and the older brother of Darian's fathers. At the point of his death, he was the president and CEO of Synder Enterprises and the de facto head of the Synder Family since the death of Myron Synder eight years prior.
It was at this point, that Darian understood how much his stoic and taciturn uncle had shielded him from the reality of their life. As soon as Micah Synder died, Darian Synder inherited all the assets of the Synder family as the sole remaining relative ad it was then, and only then, that Darian understood how bad the situation truly was.
The Synder family business, often known as Synder Enterprises by insiders, was a multi-industry conglomerate that dealt with everything from real estate to asset management to banking. As a company, it was founded more than ninety years prior by Joseph Synder, a local wood maker in the Dinte Region of Mortinia , who after a good financial year bought the local mill and started mass producing furniture.
Almost a century later and more than 7 generations of Synder family management, that furniture business grew to a multi-million dollar conglomerate with more than 2000 employees. While Synder Enterprises remained a regional business, its influence and history in the region was tangible.
As far as Darian was concerned, Synder Enterprises was going to be around for another century with its diverse and multi-industry businesses and holdings. It was shortly after the death of his uncle did he truly understand how precarious the situation was.
In the last five years all 8 primary Synder Enterprise businesses has recorded a combined revenue of more than 30 million, which is a record high for the company, but each year has seen a gradual increase in operating costs as well as continuous increase of shareholder dividends and payout. At the point of Micah Synnder's death and Darian's takeover, Synder Enterprises was operating with less than 5% of net profits retained.
Unlike his uncle and grandfather, Dairian was cast into the leadership of this major corporation less than a year after graduation, but he was still a business major and he understood the core of the issues facing. A drastically high shareholder dividend rate of 75% coupled with organizational bloat and inefficiencies has seen the profit margins shrink.
Therefore, Darian's first attempt at righting the ship was to request a 5 year decrease in shareholder dividends from 75% to 40%. This was immediately rejected by the board, who collectively controlled 60% of the company. With this frustration, Darian then turned his attention to the organizational inefficiencies and large overhead.
Darian was also met with a ridiculous amount of resistance from the board and executives who felt that large scale organizational and operational changes would simply lead to reduced margins for shareholders. Regardless of how he expounded the perilous condition of the company and the need for something to be done, no change seemed feasible.
It was only then that Darian understood the cause of his uncle's suicide and at the same time understood the mess and mayhem that his uncle sheltered him from.
Now, 7 years later, a slightly pale and weary Darian was sitting in a large conference room wearing a white dress shirt and a loosened tie. His eyes betraying his exhaustion and his dry lips indicating he hasn't had anything to eat or drink for while.
Looking around the conference room, there was a group of 12 consisting of 9 men and 3 women sitting around the table while more than a dozen lawyers and accounts stood behind them in silence. Everyone's eyes were trained at Darian who was absentmindedly staring at the 3 sets of papers in front of him.
Across the large table from Darian, sat a middle aged man wearing a gray suit and a set of hold glasses. He had graying temples and barely visible crows feet around his eyes that gave him a somewhat endearing appearance, however, a closer look at his eyes showed a stark sharpness made one realize he was anything but endearing.
The man was simply tapping at the conference table rhythmically as he stared at Darian intently as well. Suddenly , the tapping stopped as he spoke in a mild, yet measured tone:
"A decision must be made Darian. There is no longer any room for negotiation."
Darian who was consumed by the 3 sets of documents suddenly looked up from them at the man speaking to him across the room. This is the third time Darian has seen this exact scenario, and each time, it was this man, Simon Tright, who seemed to be driving a dagger in.
The first time was 2 years after he took over as CEO of Synder Enterprises, that an emergency board meeting was convened and the board unanimously voted to have him step down as CEO as this was the fourth year in a row of declining profits. Naturally, Darian knew that the fault did not lie entirely with him as he was working tirelessly to reduce the operating and overhead costs, however there was no point in arguing more than he already had.
The second time was 4 years after he was forced to step down, when the a vote was brought up by the board to issue an initial public offering and taking Synder Enterprises public. At this point in time, Synder Enterprises was operating in the red with significant project and cost overruns. This IPO was intended to pay off debts and provide shareholder payback. Thankfully, Darian was able to thwart this by using his 35% stake to block the supermajority needed to approve this.
Now, almost a year later and it seems that the board was once again attempting to force their will on him and his family business and this man, Simon Tright, was once again at the center of it all.
Darain looked intently at the man for a few seconds, working very hard to not betray the anger and hate he had for him, before leaning back and speaking in a resigned tone:
"So, i have 3 options. Agree to the sale of our most profitable business for pennies on the dollar while restructuring our other businesses under court supervision for liquidation of Synder Enterprises. Or accept the sale of 10% of my stake so that the board can explore other avenues such as an IPO. Or, simply buy out all shareholders, at a premium rate, for 27.4 million. Did i get that right uncle Simon?
Darian stared straight at Simon Tright who simply continued staring back with a smile. Seeing no response was coming, Darian simply shook his head and spoke with a resigned shrug as he spoke:
"It has been seven years since the death of my uncle Micah Synder, a man who considered most of you friends and some of you even family."
Darian's words immediately caused a few people to furrow their brows including Simon Tright. Darian didn't pay any of this attention as he continued speaking while still staring at the 3 piles of documents:
"Synder Enterprises really is struggling, we haven't been profitable in 5 years, we hadn't grown in 10 and we have now fallen into massive debt due to many reasons."
Darian paused before looking up and for the first time in a while showing a bright and radiant smile as he continued speaking while looking at the 12 board members around the table:
"I am very proud of Synder Enterprises, i have no doubt in my mind that this ship can be turned around. And i am not willing for the Synder legacy to end under my watch. I understand the offer for buyout is simply a strong arm maneuver."
Darian's smile was slowly getting broader as the faces of the other board members fell, but he continued speaking:
"You see, I believe Synder Enterprises is sick. In order for it to survive, it must rid itself of parasites and leeches. Don't get me wrong, i am a parasite on this company as well, i have leeched of it as much if not more than most. But a body infected with one parasite might live, but one with 13 will die, slowly but surely."
Simon paused at the last person at the opposite side of him who no longer had an easy going smile on his face, but rather a furious look. He dropped his smile as he spoke in a frigid tone:
"Thank you everyone for your years of service to Synder Enterprises and your continued support. Speaking as the representative of the Synder Family and Synder Holdings, I accept the offer by the board of directors to buy out all stakeholders of their investment at the premium rate of 27.4 million."
Darian pulled a pen out of his pocket before leaning toward the pile on the right as he immediately started signing. Simon Tright was the first to speak, and this time, there was no calm in his voice as he never expected this turn of event:
"Darian, wait. It doesn't make sense to sink so much of you personal wealth into this. Please. Just sell the shares and we can all go back to better times once we go public."
Darian paused for half a second before signing the second copy of the board offer, but he responded:
"First of all, we are going back to a better time. It has been almost 80 years since the Synder family had full control of our fortunes. I believe back then, we exchanged 15% Synder shares for 10% of the Tright Mining Corporation, a poisonous deal if I ever saw one. Second, it is Mr. Synder to you Mr. Tright."
As soon as Darian finished signing the last set of the documents, he let out a sigh of relief before sitting back down in his chair and loosening his tie further before speaking once again:
"Please see yourselves out ladies and gentlemen."
A pervasive silence covered the conference room as all the board members and their teams started at the pile of documents in front of Darian as if in disbelief. In a matter of minutes, a situation that none of them even though was possible occurred, Darian Synder has bought out all external investors in one fell swoop.
A 30 year old pissant who none of them gave consideration or credit has managed to spend 27.4 million of his own money to buy them out of his family business.
Darian Synder was the sole owner of Synder Enterprises.