Reborn in America: Starting as a California Resident

"Mr. Austin, that's the situation regarding Henry Getty's proposed investment..."

At around 6 p.m. on June 15, sunlight streamed into Allen's office, casting golden rays onto his desk, creating a stark contrast with the serious expression on his face.

The other party was currently holding a special board meeting via telephone line—indeed, the Gulfstream board of directors now consisted of only two people.

His voice was clearly heard over the phone by another board member, Paul Austin.

Of course, he deliberately omitted some details, such as Henry's promise not to interfere with the company's day-to-day management and his willingness to let Allen act as his proxy for voting.

On the other end of the phone, Paul Austin sat in his study, his brow furrowed, his fingers tapping rhythmically on the table as he pondered what the Getty family's sudden intervention truly meant.

"Alan, are you planning to accept the Getty family's investment?"

"Yes, Mr. Austin."

Allen's voice came through the phone, "I think we have no other choice now."

"As you know, since the 1978 oil crisis, the entire aviation industry has experienced an unprecedented downturn, with many potential buyers postponing their procurement plans."

To make matters worse, the recent surge in raw material prices has driven up our production costs, while our already strained cash flow has deteriorated further.

We are facing severe financial pressure.

With bank loan interest rates rising continuously, our debt burden is becoming increasingly heavy.

However, the development of the Gulfstream III is not progressing as expected. If we cannot resolve these issues and launch new products in a timely manner, our market share may be further eroded by competitors.

He paused for a moment, took a deep breath, and then said, "Even our star product, the Gulfstream II, is experiencing a gradual decline in sales."

Due to its outdated fuel tank design, insufficient fuel capacity, and limited range, it is clearly no longer suitable for today's globalized world.

Since 1978, when we decided to shift our focus to the development of the Gulfstream III, improvements to the Gulfstream II have almost come to a standstill, coupled with the current economic situation...

Faced with this situation, I was prepared to sell the only airport the company currently owns.

Now, the arrival of Henry Getty may be exactly the glimmer of hope we desperately need.

Savannah has high land prices, and the airport owned by Gulfstream is incurring increasingly higher taxes each year.

Although Allen signed some preferential agreements with the city of Savannah, the airport, which was mainly used for test flights, was underutilized!

Compared to the high cost, it is indeed a waste of resources.

The reason Allen didn't use layoffs to reduce company costs like other companies;

This is simply because aerospace engineers are considered high-end technical personnel in the manufacturing industry.

Unlike ordinary construction workers, they are not easy to replace.

If they are dismissed now, it will be extremely difficult and costly to rebuild such a team that is familiar with the business in the future!

After all, only the original team truly understands the Gulfstream's needs. They are intimately familiar with the Gulfstream III's technical specifications, performance parameters, and design structure, and can immediately address any problems that arise.

If a new person takes over, it will take them a considerable amount of time to adapt...

"Alan, I understand the current situation of the company, but if the Getty family really wants to take a stake in the company, how much equity are you prepared to transfer?"

How much should it be diluted?

Paul's words revealed a hint of helplessness.

Gulfstream Corporation was indeed going through a very difficult period in 1979.

The unfavorable global economic environment, coupled with the high costs and technical requirements inherent in the aviation industry, has severely challenged the company's competitiveness in the market.

He himself also has his own little plans.

They originally planned to use their superior funds to gradually take control of Gulfstream, but unexpectedly, a dark horse appeared out of nowhere!

Henry Getty's involvement has undoubtedly disrupted all his plans.

On the other side, Aaron Paulson smiled silently when he heard Paul Austin's question.

He was very clear about Paul's thoughts.

As the president of Coca-Cola, the other party has access to a great deal of resources.

However, the other party has consistently ignored the Gulfstream's predicament.

Even if you call and ask for help yourself...

Therefore, Allen has been looking for an opportunity to break the deadlock.

Henry Getty's involvement may not have been a bad thing for him.

"Mr. Austin, based on Henry Getty's proposal, he is willing to provide us with a $30 million capital injection in exchange for a 30% stake in the company."

However, considering the company's specific circumstances, I only intend to allow them to acquire a 25% stake.

Of that, 5% will be transferred by me personally.

The remaining 20% ​​will be diluted proportionally by the company's original share capital.

"Alan, this is no joke!"

Gulfstream's current ownership structure is that Aaron Paulson owns 70% of the shares, and Paul Austin owns 30%.

Even excluding the 5% that Allen diluted himself afterward, Paul still couldn't accept the proportion of his own contribution being diluted.

"Alan, I understand the company's current predicament, but I don't want to see my equity diluted excessively."

If possible, I hope to complete this financing round without changing my personal shareholding percentage.

"Oh, Mr. Austin, what are you talking about!"

Diluting it by 5% is already my absolute limit!

If the dilution continues too much, I will have to relinquish my position as the company's controlling shareholder!

Based on the current ratio, Allen Paulson's diluted shareholding percentage is: (frac{70%}{100%} times 20% = 14%)

Paul Austin's diluted equity percentage: (frac{30%}{100%} times 20% = 6%)

After initial dilution, the two individuals retained 56% and 24% of the shares, respectively.

Afterwards, Allen diluted it by 5% separately;

At that time, the company's final shareholding structure will be: Allen Paulson 51%, Paul Austin 24%, and Henry Getty 25%.

If the sale were to proceed on this basis, Allen would not be able to guarantee his control over Gulfstream.

This is the last thing he can accept!

On the other side, Austin sighed helplessly upon hearing Allen's words.

He felt utterly helpless;

But I also understand Allen's position very well.

As the company's founder, the other party naturally wants to maintain maximum control over the company.

I understand what you mean!

Then let's do it your way!

After all, you are the controlling president of Gulfstream!

"Thank you very much for your understanding, Mr. Austin."

I know this isn't an ideal arrangement for you, but I believe it's the best solution we can currently take..."