Chapter 1

TOM AND LAWRENCE—JULY 29, 2021

The pandemic had not been kind to Lawrence Cameron, at least not to his waistline. As The Big Guy strode across the restaurant to join him for dinner, Tom could easily see that Lawrence had packed on a few more pounds while working from home. Toronto’s legendary finance guru and media commentator had earned his nickname for his investing prowess, but now the term was even more suitable for the six-foot-two-inch, 250-pound influencer.

When Tom stood to greet him at their table, Lawrence gave him his usual whack on the back and the now customary COVID-19 elbow bump. Even though Tom had played football in high school and was himself six feet tall, he always felt dwarfed by his main investor and personal mentor. Maybe it was also because of the gap in experience between them, as Lawrence was twenty years older.

“Tom, how’s my favorite entrepreneur doing?” Lawrence asked while settling into the comfortable leather banquette reserved especially for him by the manager of ONE, the see-and-be-seen restaurant adjacent to the Hazelton Hotel in Toronto’s upscale Yorkville enclave.

“Good, thanks, Lawrence, but crazy busy with all that’s going on with the business, as you can imagine,” Tom responded.

“No doubt. And I bet you never thought that seven years in, you would have brought Pellucid so far!” Lawrence said.

Tom agreed as he reflected on how truly surreal it was that the data analytics software company he had founded— Pellucid—was valued at over US $200 million, and a Silicon Valley company was now proposing an acquisition.

To have hit that milestone at the age of thirty-eight is honestly mind-blowing, Tom thought.

“I’m looking forward to hearing your updates today, Tom, but given that Grace just put me on a no-frills diet, I’m definitely ready to dive into this menu before we get started,” Lawrence joked.

Tom smiled, knowing that Lawrence’s second wife, Grace, did her best to keep her husband’s life—and his weight—balanced. He knew Lawrence would be eyeing the restaurant’s signature lobster spoons as an appetizer and something carb-heavy and definitely not on Grace’s diet plan for the main course.

While Lawrence ordered for them, Tom admired the contemporary styling of the chic restaurant.

It’s the little things everyone missed during the restrictions of the pandemic, like being able to get together with friends or enjoying this kind of ambience, Tom thought.

Yorkville, with its high-end boutiques and elegant hotels and restaurants, was where Toronto’s elite dined and shopped. It wasn’t part of Tom’s typical day-to-day, but he and his wife, Miriam, sometimes had drinks at ONE’s expansive bar because the art gallery she curated was just around the corner.

After the waiter had filled their glasses with a Chianti Classico wine, Lawrence leaned forward and spoke quietly so other diners wouldn’t overhear.

“So, what about the acquisition? What’s the latest from Crystal Clere?” he asked.

Tom confided that the California artificial intelligence company’s CEO had confirmed he would be offering US $250 million in cash and stock to acquire Pellucid. The next step would be for Tom to receive a letter of intent formalizing the offer, and then Pellucid’s board would have until September 15—about six weeks—to decide whether to approve the sale.

“I’m open to the offer, which is certainly substantial, but I still feel a bit reluctant, Lawrence. I always envisioned taking Pellucid to an IPO on the TSX and Nasdaq myself. On the other hand, it’s hard to turn down a huge payout from a well-established company like Crystal Clere that’s a great fit for our software,” Tom said.

“Not only that, Tom, but as they say, timing is everything. The pandemic has shown you never know what kind of economic climate you might encounter just when you’re ready to take the company public. Sometimes it’s good to take a profit and focus on the next opportunity,” Lawrence said, as he nodded to acknowledge a couple of people passing by their table who obviously recognized the Big Guy from media interviews.

“That’s a great point, especially after everything we’ve seen over the last year, from market volatility to the January 6 insurrection,” Tom agreed. “It definitely creates a more opportunistic mindset.”

“And of course, I wouldn’t object if my investment in Pellucid netted out to a nice-sized return,” Lawrence quipped.

“Ha, I’m sure!” Tom replied. “Well, for now, Winston is earning his CFO pay and then some, working through the due diligence to address all the financials, and Crystal Clere’s CEO and I are in discussions ensuring we’re well aligned. But so far, I can say that I like what I see. And that’s important because if we sell, they’ll probably want me and possibly a couple of my senior team to commit to working for a year or so as part of Crystal Clere.”

“Yes, it’s pretty standard for the acquiring company to want at least the CEO to stay on for continuity,” Lawrence agreed. “Overall, you’ve got this, Tom. Working through the process, making sure you have all the information up front, and doing the due diligence is the right approach. Then when you have all the facts and feel comfortable, I’m sure it will be easier to make your final decision. And, of course, whatever direction you decide to take, the board of directors must be onside with it as well.”

Tom nodded agreement as Lawrence twirled some of his impressively presented main-course seafood linguini onto his fork.

“Okay, so fill me in on Patrick,” Lawrence said. “I know you were having some issues with him last time we talked. How did that net out?”

Tom sighed. It had been a tough situation to manage. Five years before, Tom had met Patrick McGowan at the stable where they both boarded horses and had soon hired Patrick to be his business development manager. The two men were close in age but had vastly different personalities. While Patrick’s Irish flair and direct manner with prospects had proven helpful in building the business, his proclivity for partying had created problems.

Tom shared with Lawrence that he’d had no choice but to fire Patrick and, after a contentious final meeting with him, he suspected their friendship had been permanently shattered.

“That’s unfortunate, Tom,” Lawrence said. “But eventually Patrick’s shenanigans would have attracted attention and reflected badly on Pellucid. I know you hate being tough on people, but didn’t he lose an investor for you when he missed a key meeting?”

Tom indicated that had indeed been the last straw and agreed he had run out of options when it came to keeping Patrick on his payroll.

The two men lingered over coffee and liqueurs while reviewing Pellucid’s latest quarterly results, upcoming sales pipeline, and the company’s case study currently in development at Tom’s father-in-law’s business in North Carolina, one of Tom’s biggest early-stage clients.

“Are you staying here in Yorkville tonight or at your place?” Tom asked as he and Lawrence concluded their business.

“Next door at the Hazelton,” Lawrence replied. “Grace and I have been living up north at the cottage during the pandemic, and I’m more comfortable playing tourist here in Yorkville rather than rattling around our big house in Rosedale without Grace.”

Tom chuckled at Lawrence’s candor and, as always, admired the close relationship Lawrence had with his wife. The two men parted ways, with Lawrence going to the bar for a final nightcap before turning in and Tom heading for home.

***

Excerpt from Devious Web by Shelley Grandy. Copyright 2024 by Shelley Grandy. Reproduced with permission from Shelley Grandy. All rights reserved.