Here is the way I have been seeing / talking about the acquisitions thus far and from what I have experienced in my career...take it for what it's worth, but it makes sense to me.
Think about the NCH acquisition while you read.
If I have a company that is doing 'okay', making a profit, etc. and I am approached with a deal like we have seen TS execute...that is, TS offers a number of preferreds for the equity I have in my own business...and he takes the debt...which I owe anyway. And, he lets me continue to run my business, but now have the synergistic effects of a larger company available to me, the financial leverage that can come being a part of a larger company, etc., etc., then what do I do?
I sit down with the guy along with my own financial people and look at what he has for a plan. If I decide that he is on the up-and-up and my advisors decide that there is something in it for me on the upside, then I hitch my wagon and get ready for the ride.
As long as I am running my 'old' business day-to-day and have a good working relationship with the boss...and, I should have determined / decided that in the beginning, then my preferreds simply back up what I already had, less the debt.
Of course, I have to continue to run my business successfully and it has to continue to do 'okay' or better. I just can't go on holiday.
After all, if I wanted to go on holiday or I didn't believe the pitch or didn't have faith in my own or new company, then I'd be a fool not to ask for cash and run. Either all cash up front or in some scheduled manner depending on the size of the deal.
Tom could take MY terms or not, the ball would be back in his court....no loss to me as I would own my business with or without a partnership with SWVC.
Hope that makes sense; hope that answers your questions.
AI
Market Data 
Markets 
