Going Down In Flames ...

[MJ DeMarco]

knowing what you know today, would you invest on this deal again?

If yes, ride it out.
If not, sell.

Either case, make a decision that brings you peace of mind.

I told the CEO "If this was a publicly traded company, all my shares would be sold". Andres, I can't sell the shares - there is no liquidation event and I am now, a minority holder. I just can't call someone and say "hey, I want to get out".

I'm not losing sleep over it, but I just don't A) Like watching investments go south and B) Watching customers I serviced, not be serviced.

It like watching a bad sports team on TV getting killed on the playing field; I can turn it off -- but when I turn it on and watch, it is frustrating. Lets just say the TV is off.... :smxB:

 

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[TaxGuy]

B) Watching customers I serviced, not be serviced.

Just like from your personal success story!!! Yours came from providing a great service and it sucks to see that being driven into the ground. Here is another example that Harvard MBAs and VC funding means nothing if you don't provide a great service and it seems that they are letting their own selfishness get in the way of success, maybe you should turn them on to some fastlane thinking, but unfortunately it sounds like they are set in their ways and not open to change :nonod:

 

[MJ DeMarco]

What adds to this frustration is seeing all the public comments being made about the company "rip off" "liars" "crooks". They don't answer their support emails. A client writes " I've sent an email 3 days ago and I haven't gotten a response".

I don't even want to login anymore because I don't want to be associated with it.

And when people post questions, the CEO comes on an selectively answers the ones he can answer, and ignores the rest.

Someone finally said "Why are my legitimate questions never answered?????"

When I was running support, questions were answered in minutes with a truthful response even if the answer wasn't to be liked. Now, I guess the policy is "ignore it and maybe it will go away" or shove them to the call center for a 40 minute hold.

When the private equity lead on this investment calls me asking for a "call for more capital" I'm going to laugh and say "Sorry, but no. I tried" ... tried to put a finger in the gorge.

 

[Redshft]

Grow or fail, I hope things work out for the best for you and the company.

 

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[GettingThere]

Good luck dealing with this, MJ...however you decide to. I can't relate to this circumstance, but I feel like it's similar to selling a house or car to someone after maintaining it meticulously, improving it and enjoying it, only to watch them let it fade, deteriorate and crumble. Even though it isn't "yours" any longer, you still feel a sense of pride in, and personal attachment to it.

Plus you have some $$ and your name directly attached to this.

- John

 

[snowbank]

Andres, I can't sell the shares - there is no liquidation event and I am now, a minority holder. I just can't call someone and say "hey, I want to get out".

not to get off track from the discussion but was curious MJ, how was it structured so that you aren't allowed to sell your shares? I ask because in a venture I'm currently involved in I wasn't able to set it up like that for minority owners.

 

[MJ DeMarco]

There are about 25 investors - I know one is a CEO of a well known NASDAQ company and the others have other primary interests. Basically, we the investors are in this for one thing: A big acquisition event in a few years. None of the investors are short on money and it wouldn't help the company if we had investors coming and going, selling shares at a moment's whim. I can't recall, but there are buy/sell clauses available in the Op Agreement, but I believe it is for majority holders.

My options would be to transfer (sell) my interests to another party. This I can do, but it is a cumbersome process, requires board approval, the new member needs to be interviewed, all kinds of song-and-dance. .. definitely not like logging into Ameritrade and hitting "sell".

 

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[Luke12321]

Wow...just amazing how some people do business.

Why listen to someone who has built the business himself and brought the site back once before after failed management? :nonod:

I hope for your sake MJ they get it together before they ruin a good thing. I would assume in the lead gen industry, bad customer service could run a website in the ground VERY quickly considering someone else is probably waiting to scoop them up and take a bigger share of the market just by listening to the customers and working together to bring a better service to the table.

 

[mtnman]

So how are things big boss?

 

[ramy98]

MJ is this the same business that you sold and re-bought at a fire sale price and restructured / sold again ?

Its all about servicing the customers; cant believe the support is that bad!

 

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[MJ DeMarco]

So how are things big boss?

Thx for asking. :smxB: Things have improved, but not to any standard I agree with. I try not to pay attention any longer. It is what it is.

MJ is this the same business that you sold and re-bought at a fire sale price and restructured / sold again ?

Yes sir it is!

 

[Genius01]

@MJ DeMarco , sorry for bumping a thread this old, but I was really curious after reading the entire thread.

How did this eventually play out?
Who was right ultimately in those decisions- You or the CEO?
Were you finally able to liquidate your investment for a juicy payout after several years, ....or your investment has appreciated significantly but you're still holding on, .....or the whole thing eventually tanked due to poor management decisions?

Just curious as to how the whole thing finally played out, now that you have the benefit of looking at things several years down the line.

I might also draw one or two lessons from the whole scenario.

Thanks.