Milstein’s response was simple: "Tell them I expect to get more
than $45 a share. Tell them that I’m paying them to sell the company and they
shouldn’t argue with me about the price I want. They should be able to argue
with the customers why it’s worth that price!"At the end of bidding, Bain Capital offered the most
money—slightly less than $45 per share. It wasn’t enough, particularly for
Milstein’s sons. "When Bain was the last one standing, they said, ‘You know,
we’re the high people,’" Andrew recalls. "I said, ‘We don’t have to take the
deal.’" Father and sons agreed. "The auction process ran out of gas
before $45, and I told Goldman I wasn’t interested in selling for less than
that," Milstein says. They held firm. Finally, Bain took the company private for
$45.50 per share in a deal that closed in April 2006 for $2.1 billion. According
to SEC filings, Andrew and Stephen each owned roughly 6 percent of Burlington,
or about 2.5 million shares. At $45.50 per share, they each earned more than
$113 million. After the sale, the Milsteins offered to consult with Bain, but
the new owners never asked for their help. Bain eventually offered $15 million
as part of an extended noncompete agreement, but Milstein’s sons turned down the
proposal in favor of a 12-month noncompete, which would enable them to return to
the market quickly. Although they have yet to go back into business, they are eying
new ventures. Milstein, like his father, now urges caution. "I think my boys
have considered going into business again. There’s nothing wrong with that, but
be more careful before jumping into it because it took us a lifetime to make
this money. If you lose it quick, everyone’s going to laugh at you." For his
part, Milstein has no plans to go back to work; he describes his current life as
"vacation seven days a week." Andrew, however, has been busy investing his money. He admits
that growing up with most of his family’s wealth tied up in a company has made
him unadventurous with wealth. "Any money outside the business we always treated
like mattress money," he says. "So now, even though I don’t have anything
invested in the business, I’m still very conservative." Andrew and Stephen will consider other ventures, but Andrew
refuses to take risks on any perilous opportunities. As if channeling his late
grandfather, he says: "There are infinite ways to lose money."
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