Many years ago, I sold a business that manufactured its goods in a small, neat, clean and tidy facility. Above it was living accommodation for the owner, Ivan. In weekend jaunts, Ivan would travel throughout the province and set up sales stands in various flea markets and church halls. He had three rotating routes and did quite nicely on this route business.
Ivan was asking for a fair amount of money for his company. I had great difficulty with the price, based on the revenue and profits of the company. We finally found a buyer. Andy was ready, willing and able to buy Ivan’s business.
When questioned about his revenue and profits, Ivan said, "
omigosh! There is no problem proving to you that the profits are much higher than shown. Let’s go to my bank."
Andy looked at me and we all jumped into this old rattletrap of a vehicle and drove down to Ivan’s bank. We walked into the safety deposit box room. Ivan opened the safety deposit box and showed us almost $100,000 in cash.
He went on to explain that all the revenue that came in from his weekend route business went directly into the safety deposit box. Once a year, he would fly back to the old country and take this money with him for his parents. Ivan was due to make the trip again in about six weeks.
Seeing this extra cash, Andy quickly agreed to Ivan’s asking price. The transaction was consummated. However, part of the deal was that Ivan stay for 90 days in order to show Andy the ropes and teach him how to operate the business.
During the tenth week after closing of the transaction, Andy and Ivan became embroiled in a very heated discussion. This resulted in some shoving and pushing.
Andy was pretty steamed. He called Revenue Canada’s l-800 number. The following morning the RCMP showed up at Ivan’s bank with a warrant and a locksmith. They drilled into the safety deposit box and removed the cash. Ivan was never heard of again.