In a room with Vue
Article Date: Sep 19 2006Richards has no illusions that the buyout will automatically deliver financial gain. 'You have to appreciate the risk along with the potential rewards,' he says. 'You have to be comfortable with the capital structure and be aware that you could be tripped up in future by factors beyond your control. You want to have the most efficient capital structure for the company, but you also want to be able to sleep at night,' Richards warns.
If Vue’s chief executive is suffering from insomnia, it’s only because he’s eager to get back on the ground and accomplish his vision. 'People always ask what keeps you awake at night,' he says. 'I stay awake because I am so excited about the opportunities.' Richards is pleased that the whole management team has a stake in Vue Entertainment. 'That’s very important to me,' he says. “My entire team have a large part of their net worth, or all of it, in the company. People are tied to the success of the company and that is highly motivating.
'The MBO has strenghtened their understanding of the potential gains. Everybody took out a little bit of money – just to take a bite off of a few mortgages – but I think people saw first-hand that this is real and if we do things right, if we create the value we believe is inherent in the company, we can profit from it and potentially profit very well. It is also an endorsement, because they had an option to cash out. I take comfort from that as chief executive. And I think any shareholder would take comfort, because you are really putting your money where your mouth is because you believe in the proposition.'
This article was originally published in Masterclass magazine.
