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business over the time it managed the company. Dubin Clark
intended to take SWI public when sales reached $250 to $300
million, which they expected to take about 3 years.
An important aspect of Dubin Clark's plan to expand
SWI was hiring experienced management. In accordance with
this aspect of its plan, SWI approached petitioner in
March 1989 and offered him a position overseeing the
company's expansion. Dubin Clark believed that
petitioner's expertise in assembling management teams,
building corporate infrastructure, and establishing plans
to facilitate corporate growth was essential to its plan to
expand SWI.
Petitioner originally rejected Dubin Clark's offer
because he did not agree with its plan to make SWI a
dominant regional retailer. Rather, petitioner believed
that SWI would be most competitive if it expanded into a
variety of geographical markets. Dubin Clark eventually
agreed with petitioner's assessment and offered him the
position of president and chief operating officer of SWI.
Petitioner accepted Dubin Clark's offer in April 1989,
but did not join the company immediately because he had
previously committed to assist Home Depot in a debt
offering. Although he provided consulting services for a
short time before his actual starting date and attended the
opening of SWI's third store in Houston, Texas in April,
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