Code of Silence

Code of Silence - Chapter 9

Tony Varkanopolis had presided over the Varkasoft business for twenty-five years, and his visionary appetite was now fulfilled by his pet project: V-Works. His protégé, Ross, was focussed and full of energy, developing some incredible new opportunities, particularly in the area of artificial intelligence.

Tony was fully committed to selling the business and knew that it was time to cash in on his success and, more importantly, on the potential he could still see ahead for the Varkasoft business. His wife and son had recently relocated back to the UK so that Theodore could continue his education at university. Tony had amassed enough wealth to retire, many times over. Or for that matter, to retire, become bored, come out of retirement, set up another business and sink millions into it before quitting on it and retiring again.

He'd witnessed many business acquaintances of his age do exactly that, but he wasn't about to roll the dice again. Instead, Tony had instructed his directors to draw up plans for the sale of his majority shareholding, handing complete control to a new owner and letting them get on with it. If it meant there was a role for Tony after the deal was done then that would be a bonus. Despite his long tenure at the helm, and the efforts and energy he'd devoted to the success of Varkasoft, Tony was clear that it was a means to an end. When the time came to let go in exchange for an eye-wateringly large cheque, then he'd do so. He included within the planning brief the ability for the top management team, his five hand-picked lieutenants as he called them, to propose a buyout, acquiring Tony's majority shareholding and running the business themselves, should they wish to. After all, they knew the business and had grown with it, so who better to run it moving forward.

The plans had come together smoothly. The management team had gracefully declined the buyout opportunity, which surprised him until he reflected on it. His team had seen how Tony had run the business, steering clear of unnecessary gambles and rolling the dice only when the odds were in his favour; Tony was getting out of the moving car, and he could see how they might conclude that there was no reason for them to be getting in. They'd do well enough out of the deal anyway, as Tony had been keen to lock them in, securing their loyalty with shareholdings of their own.

That was all fine with Tony. The plan was agreed, and without the management team negotiating from the other side he could once again slip into adversarial mode and secure the best deal. Corporate finance advisers were employed to handle the process, lining up potential buyers, looking after the detail, dotting and crossing things as required. A shortlist was drawn up specifying a number of interested parties, all of them with different motivations but the same single focus on the jewel in the Varkasoft crown: its ability to deliver a very bankable stream of future profits.

Along with his suited lieutenants and an entourage of advisers, Tony had spent many months in meetings, on conference calls and sitting through countless presentations. He was becoming concerned at the amount of time it was taking and was keen to avoid any distractions from the main business due to the sale.

There were several possible buyers involved in the later stages but most of them were offering a share-based deal and Tony was clear about wanting to cut and run, should he need to at any point. Having shares in a new and larger business would potentially prevent that. Eventually, it became clear that there was a primary target to which they should try to sell: the giant Russian technology company Ekranotech Industries. It was one of the fastest growing businesses in Russia, around twenty times the size of Varkasoft yet only established six years previously.

Ekranotech was owned by Zoryn Radoslav, a wealthy Russian entrepreneur in his late thirties who, along with his business partner, made over two hundred million dollars in Russia's early-stage technology boom, by establishing and eventually selling his online casino business to an Israeli software development company. While his business partner retired to take up the role of international playboy, touring the world's most glamorous marinas in his new superyacht, Radoslav's new venture, Ekranotech, had been created to exploit a new opportunity: the emerging market for intelligent automotive engineering, where he would be competing with giant US corporations in the race to create the ultimate smart vehicles of the future.