7 Cash Carnival
Alexander straightened his tie and smoothed his hair as the chauffeured Rolls-Royce pulled up to the Stark family's impressive new townhouse on Fifth Avenue. Despite his youth, his intelligence and past life memories gave him the poise of someone far older. His parents, Joseph and Natalia, exchanged an anxious glance, while Mr. Hamilton, their broker, and Mr. Wright, their lawyer, reviewed documents one final time.
As they stepped onto the curb, Alexander paused to take in the towering edifice before them. "No need to be intimidated," he said reassuringly to his parents. "Remember, we must remain flexible in our negotiations. Start high at 40%, then compromise down to 30% if needed. But not a percent lower."
Joseph and Natalia nodded, deferring to their son's financial acumen. Though initially skeptical, his predictions about the market crash had proven impeccably accurate, earning their complete confidence.
A uniformed butler answered the door and led them down a richly appointed hall to an elegant study. Howard Stark Sr. rose to greet them, his sons Howard Jr. and Edward lurking behind him.
After cursory introductions, the group took their seats. Alexander noted Howard Jr.'s assessing gaze as the young inventor sized him up. Alexander met his eyes unflinchingly, recognizing in Howard a keen intellect to rival his own.
"I must say, this offer of yours has piqued my interest," Howard Sr. began, steepling his fingers. "But I confess, I'm curious as to your motivations. Why seek such a significant stake in Stark Industries?"
Alexander cleared his throat. "Purely financial. My models show high growth potential for innovative companies like yours, even in these difficult times. We believe in your vision and wish to partner for mutual benefit."
Howard Sr. pursed his lips, considering this. Alexander could see the spark of interest in his eyes. The elder Stark had a weakness for flattery, a need to have his genius recognized. With the right stroking of his ego, Alexander knew he could be maneuvered.
"Yes, we are quite innovative, aren't we?" Howard Sr. preened. "Our inventions will shape the century to come. I knew from early on that my boy Howard had a brilliant mind. You should see what he's working on now...such futuristic visions!"
Alexander noted Howard Jr. shift uncomfortably at his father's praise. Interesting. Perhaps some unresolved tensions there.
"Most impressive," Alexander said. "I'm sure Howard will lead Stark Industries to great heights. However, we believe your steady guidance is also vital for future stability and growth."
"Yes, well said!" Howard Sr. sat a bit taller, warming to the flattery. Out of the corner of his eye, Alexander saw Howard Jr. frown slightly.
"Now, let's discuss numbers..." Alexander slid a paper across the desk. "As mentioned, we're offering $1.5 million in exchange for a 40% stake in Stark Industries."
Howard Sr. pursed his lips, looking over the offer, as Alexander felt the mood in the room shift. "Only $1.5 million for 40%? Preposterous!" he huffed. "Stark Industries is worth far more than that, even in these times."
Alexander kept his face neutral, though inwardly he cursed. He'd lowballed the offer, hoping to capitalize on the economic woes to acquire a sizable stake on the cheap. But Howard Sr.'s pride was getting in the way.
"I understand your position," Alexander said smoothly. "However, our valuation experts determined this was a fair price given current revenues and the state of the stock market."
"Well your experts are wrong," Howard Sr. declared bluntly. "This company will be worth millions more in a few short years, mark my words."
Alexander weighed his options. He could try to negotiate, but Howard Sr. seemed intent on refusing the 40% stake. Time for a new tactic.
"You make a fair point," he conceded. "Perhaps 40% is too high an ask at this valuation. What would you propose instead?"
Howard Sr. relaxed slightly now that his outrage over the low figure had been validated. "I'm open to selling a 20% stake, no higher, at the price you offered," he countered.
Alexander pretended to consider this. In truth, 20% was far too low for his goals. But he needed to keep Howard Sr. engaged.
"Hmm, 20% is a bit light," he mused. "What about a 35% stake at $1.75 million? A reasonable increase that provides your company a valuation at $5 million, while still allowing us to secure a meaningful position. And should the need arise, we would also be open to providing further capital injections in future funding rounds."
Howard Sr. tapped his fingers on his desk, then glanced at his sons. Alexander could see the wheels turning. A $1.75 million cash infusion would be useful, but he was reticent to hand over so much control.
"30% at $1.75 million," Howard Sr. shot back. "I won't budge higher."
Alexander hid a smile. Perfect. He'd anchored high at 40%, making his true target of 30% seem like a concession. Now to seal the deal.
"I think we can work with 30%," he said, extending his hand. "I look forward to our successful partnership and the growth ahead."
Howard Sr. considered briefly, then shook firmly. "Very well. Let's finalize the paperwork."
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Two days later, I was surveying nervous faces around a board-room table. Things were going even better than I had anticipated. Firstly, we had managed to wrangle away another 6% from other shareholders of Stark Industries, and now this.
"Gentlemen," I began, my gaze lingering on each man in turn, "let's not mince words. Your company is floundering. In the last eight years, Electric Boat has built four submarines. Just four! And all for the Peruvian navy, no less."
I scoffed and shook my head in mock dismay. "Meanwhile, your share price has cratered to a mere 25 cents. It's clear you need an infusion of capital and vision to turn things around."
I paused, allowing the tension to build. The men squirmed under my stare. Out of the corner of my eye, I could see my parents and Mr. Hamilton suppressing smiles. They knew where this was headed, and I was aware that by 1954, those shares, currently worth a measly 25 cents, would be worth $137 each—a 55,000% increase!
"That's why I'm prepared to offer you $5 million for a controlling 51% stake in Electric Boat."
A collective gasp arose around the table. The president, Henry Carse, turned red as a beet.
"Now see here, young man," he blustered. "This company has been building submarines since 1899! Why, we were pioneers in underwater warfare!"
I held up a hand to silence him. "Please, Mr. Carse. Spare me the nostalgia trip. We both know Electric Boat hit its peak during the Great War. You're a banker by trade, so let me put this in financial terms you'll understand."
I leaned forward, my eyes boring into his. "Right now, your company is circling the drain. But under my leadership and capital injection, I can turn Electric Boat into the premier submarine builder in the world. I'm offering you a life preserver here."
Carse gulped, sweat beading on his brow. The other shareholders whispered amongst themselves, clearly rattled. I had them on the ropes.
"Why don't you gentlemen take a moment to discuss my offer," I suggested magnanimously. "I think you'll find it's extremely generous given the circumstances."
As the men huddled together, I relaxed back into my chair, exchanging knowing glances with my parents and Mr. Hamilton. We didn't even need to confer - we were all on the same page.
After several minutes of hushed debate, Carse turned back to me, his expression resigned.
"We've discussed your offer, Mr. Sterling, and we're prepared to counter at $13 million for 93% of Electric Boat."
"It seems you're all quite ready to offload your shares in Electric Boat as quickly as possible. Clearly this company needs an overhaul if everyone is so eager to wash their hands of it." I chuckled and shook my head in amusement.
The shareholders squirmed under my stare, exchanging uneasy glances. They knew I had them backed into a corner.
"Anyway, that's neither here nor there," I continued breezily with a wave of my hand. "You're looking to sell, and I'm looking to buy. I'd say that makes us natural partners in this little transaction."
I stood up abruptly, straightening my vest as I did so. "Well, Mr. Carse, it seems our business here is concluded." I extended my hand across the table to shake his. "It's been an absolute pleasure doing business with you gentlemen."
Carse looked mildly stunned as he grasped my hand limply. Clearly he hadn't expected me to remain so cheerful and magnanimous after ruthlessly negotiating them down. But that's all part of business - never let them see you sweat.
"I'll have my legal team draw up the contracts and arrange the transfer of funds and shares," I continued briskly. "We'll finalize all the technical details soon. For now - congratulations on finding a buyer for this fine company of yours."
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One week later, Alexander stood calmly amidst the murmurs and shuffling of the Bethlehem Steel shareholders gathered in the opulent boardroom. When he spoke, his voice cut through the din with razor-sharp focus.
"Gentlemen, your company has posted losses totaling over $30 million in the past two years. Despite investing an additional $20 million to spur a turnaround, the red ink continues to flow."
Alexander paused, allowing his words to sink in. The shareholders exchanged troubled glances as the truth of their predicament settled upon them.
"You need me far more than I need you," he continued, an edge of steel in his tone. "Moreover, I own Electric Boat, a company specializing in submarine construction. You produce steel and repair ships—I daresay our companies are more complementary than you realize."
Alexander straightened his shoulders almost imperceptibly. "I will accept nothing less than majority ownership of Bethlehem Steel Corporation. Dilute your shares to grant me a 70% stake for $50 million and I will merge our companies, diluting Electric Boat's shares at a ratio of 5:1. The combined valuation will only grow over time. This is my final offer—take it or leave it."
.
.
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Alright, just to be clear:
• Tony Stark's grandpa in the comics? That's Howard Stark Sr.
• His dad, Howard Stark Jr., took over Stark Industries in 1939. After that, he's just known as Howard Stark, so don't sweat the details.
• In the comic world, it was actually Tony's great-granddad, Isaac Stark, who started the whole Stark Industries gig, not Howard Jr. like in the movies.
• Heads up, I'm gonna mix it up with stuff from both the comics and the movies for this story.
• Oh, and those companies Electric Boat and Bethlehem Steel? They're the real deal. I dug into what they were worth back in '32, so you can trust there's no funny business with the numbers. Right now, Alexander's sitting on a hefty 74% of Sterling Enterprises—that's the baby of Electric Boat and Bethlehem Steel. Plus, he's got a solid 41% stake in Stark Industries.
• And just so you know, there's a method to the madness of buying and selling. Our guy's gearing up for a solid financial base before World War II hits. The U.S. was throwing around $300 billion for the military, and those lucky enough to land contracts were raking in the profits—like 30% profits, which is huge! We're talking about $100 billion in total.
