SITUATION
Bill and Francis Waugh founded Casa Bonita. They started with a single fast-food Mexican restaurant in Abilene. Texas. At the time, they both worked seven days a week. From that small beginning, they expanded to 84 profitable restaurants located in Texas. Okla. home, Arkansas, and Colorado.
Over the years, other restaurant owners expressed an Interest In buying the hint; however, the Waughs were not interested in sell. Ing. Then an English firm, Unlgate Limited, offered then $32 million for the business and said Bill could remain the firm's CEO. The Waughs were attracted by the idea of having $32 million in liquid assets.
They flew to London to close the deal. On the flight home. however. Bill began having doubts about their decision to sell the business. He thought. We spent 15 years of our lives getting the business where we wanted it. and we have los it:
After their plane landed in New York. they spent the night and then flew back to London the next day. They offered the buyers $1 million to cancel the contract. by Unigate's management declined the offer. The laughs flew home disappointed.
1. How could the Waughs be disappointed with $32 million?
2. What should the %Vamps have done to avoid this situation?
3. What advice would you offer Bill about continuing to work for the business under the new owners?