Case F: Hydro-Mobile Inc. Case F Hydro-Mobile Inc. Shotgun Divorce Sources: PROFIT: The Magazine for Canadian...

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Case F: Hydro-Mobile Inc. Case F Hydro-Mobile Inc. Shotgun Divorce Sources: PROFIT: The Magazine for Canadian Entrepreneurs, June 2001, page 98. Reprinted by permission of Profit: The Magazine for Canadian Entrepreneurs. The road to the top as one of the 100 fastest growing companies identified by Profit Magazine in 2001 was not casy for Vincent Dequoy. The motorized scaffolding manufacturing firm was founded in 1991 in L'Assomption, Quebec. With a growth rate of 1,036 percent during the 1995 to 2000 period the firm has healthy profits of $1,572,600 on sales of $22 million. The number of employees has jumped from 20 to 90, and the company has achieved its success primarily from exporting, with 98 percent of its revenues generated outside of Canada. The major difficulty that Dequoy encountered was not from the competition but from the founder. By the late 1990's Vincent knew his relationship with his business partner, Jean Robillard, was on shaky ground. The two clashed when it came to running their firm. "He wanted to bring the company onto a fast-growing process," says Dequoy. "My vision was to stabilize the company and build strong foundations." Still Dequoy was shocked two years ago when Robillard instigated a shotgun clause in their shareholder agreement. His choice: take the money on offer, or buy out Robillard at the same price. It wasn't an easy decision. Robillard had made him a partner in 1996, but it was understood that this was Robillard's company. "I think he never thought in his life that I would take the offer," says Dequoy. But he loved the company and its product, and wasn't going to give up either without a fight. Dequoy had 30 days to come up with 30 percent of the selling price. To raise the money he brought in a partner, Benoit Duplessies, as structural engineer. In early 2000 a judge awarded control to Dequoy and Duplessis. Winning the legal battle was just the first step to claiming Hydro-Mobile as his own. Facing a confused staff and having no financial background, Dequoy built a new board of directors to establish a sense of teamwork. "I tried to change the company," he says, "from a culture of 'the men up there' to a culture where everyone has responsibility." Case F: Hydro-Mobile Inc. 2 Dequoy now surrounds himself with people who can help him push the company forward. His new team came up with Hydro-Mobiles's tactical mantra, "the four S's": service, support, safety, and seminars. "My strategy is to grow this company without selling it or going public," says Dequoy. "This will come through teamwork." After the hardships, Dequoy has advice for other potential business partners: when planning a wedding, always plan for divorce. Get everything in writing. And has he done this with Duplessis? "Yes," he says. "You need to have good paperwork. Even more so when it's your friend." Questions 1. How could the problems Dequoy faced have been avoided or minimized in the future? 2. How has Duquoy modified his leadership and communication style to facilitate company growth? Case F: Hydro-Mobile Inc. Case F Hydro-Mobile Inc. Shotgun Divorce Sources: PROFIT: The Magazine for Canadian Entrepreneurs, June 2001, page 98. Reprinted by permission of Profit: The Magazine for Canadian Entrepreneurs. The road to the top as one of the 100 fastest growing companies identified by Profit Magazine in 2001 was not casy for Vincent Dequoy. The motorized scaffolding manufacturing firm was founded in 1991 in L'Assomption, Quebec. With a growth rate of 1,036 percent during the 1995 to 2000 period the firm has healthy profits of $1,572,600 on sales of $22 million. The number of employees has jumped from 20 to 90, and the company has achieved its success primarily from exporting, with 98 percent of its revenues generated outside of Canada. The major difficulty that Dequoy encountered was not from the competition but from the founder. By the late 1990's Vincent knew his relationship with his business partner, Jean Robillard, was on shaky ground. The two clashed when it came to running their firm. "He wanted to bring the company onto a fast-growing process," says Dequoy. "My vision was to stabilize the company and build strong foundations." Still Dequoy was shocked two years ago when Robillard instigated a shotgun clause in their shareholder agreement. His choice: take the money on offer, or buy out Robillard at the same price. It wasn't an easy decision. Robillard had made him a partner in 1996, but it was understood that this was Robillard's company. "I think he never thought in his life that I would take the offer," says Dequoy. But he loved the company and its product, and wasn't going to give up either without a fight. Dequoy had 30 days to come up with 30 percent of the selling price. To raise the money he brought in a partner, Benoit Duplessies, as structural engineer. In early 2000 a judge awarded control to Dequoy and Duplessis. Winning the legal battle was just the first step to claiming Hydro-Mobile as his own. Facing a confused staff and having no financial background, Dequoy built a new board of directors to establish a sense of teamwork. "I tried to change the company," he says, "from a culture of 'the men up there' to a culture where everyone has responsibility." Case F: Hydro-Mobile Inc. 2 Dequoy now surrounds himself with people who can help him push the company forward. His new team came up with Hydro-Mobiles's tactical mantra, "the four S's": service, support, safety, and seminars. "My strategy is to grow this company without selling it or going public," says Dequoy. "This will come through teamwork." After the hardships, Dequoy has advice for other potential business partners: when planning a wedding, always plan for divorce. Get everything in writing. And has he done this with Duplessis? "Yes," he says. "You need to have good paperwork. Even more so when it's your friend." Questions 1. How could the problems Dequoy faced have been avoided or minimized in the future? 2. How has Duquoy modified his leadership and communication style to facilitate company growth?

Answer rating: 100% (QA)

1 Just as addressed towards the end of the passage Dequoy has mentioned that it is important to main... View the full answer