- 3 - At the time of filing the petition, petitioner resided in Philadelphia, Pennsylvania. Petitioner During 1986 and 1987, petitioner was a managing director of an investment banking firm (the firm). In August 1986, a major portion of the firm was sold and, as a result thereof, petitioner received in excess of $2 million. Prior to the formation of Ballard Marine, discussed infra, petitioner did not participate in boating for recreation. He had no experience as a seaman or with the mechanical operation of yachts, and he had very little personal experience in boating. Prior to 1986, he was not a member of any yacht club. Petitioner became interested in yacht chartering as a result of his activities in arranging entertainment for clients and others connected with the firm. From late 1985 to the middle of 1986, petitioner visited numerous boat shows. At those boat shows, vendors described yacht investment plans. Prior to forming Ballard Marine and causing it to purchase a boat, petitioner did not prepare a formal business plan. He did consider the economics of the yacht chartering business, as follows: He planned to spend approximately $250,000 on a boat. He believed that many operating costs (e.g., captain, crew, and fuel) would be paid by the charterer. He assumed that charterersPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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