Would you sell???

[Efficiency]

Since its tax season this should be an easy answer - whats your EBITDA? That will drive ALOT of your valuation. I walked from an offer a few weeks back. It included a 150% premium on my salary too.

[32vld]

Originally Posted by Landscraper1

I know that after answering these questions, many might be thinking, if the business is doing so well, than why think of selling? Well, the is one question that was not asked " How's your health ".

I have a rare condition that is currently under control. I feel fine and continue to work with no problems except for many doctor's visits and tests. Right now the business is running smoothly and is profitable, which makes it very easy to sell. The problem with the business is that I control everything. If something happens to me, this business will suffer greatly. Making it worth much less. I could be fine for many years to come or I can develop Cancer tomorrow.

So, now that you have all this info, what do you think?

Any one can appear healthy and wind up taking a dirt nap the next day.

So you saying your sick does not mean anything unless your doc says how much time you can do the work, how long you have left to live.

Then if the doc sees you living long term but not able to do the work but you can still do the sales and management and let field managers to the stressful work.

The possibilities of what if's is endless so I will not even try to do any more.

Again you leave the original questions unanswered.

You make another announcement that does nothing to clear the situation but only adds a 10 cubic yard load of new questions to the original list of questions your first announcement created.

In the end you as any one else has to take in the hold story to come up with the best answer. Everything is not black and white and sometimes it needs to be.

[NC Greenscaper]

Originally Posted by Landscraper1

Lately, I have been contacted by a sales broker(about 3 times in the last month), to go over the possibility of selling my business. He is looking into it for a large multi-million dollar LC that is interrested in buying my company.

This got me thinking, should I even consider an offer? I know I can get about $1mil for it but, what then. I am in good financial condition, the company is doing great, and I am only 45. I have always thought of selling when I retire in the future. Now is too soon, but who's to say I would have someone to buy later.

What would you do?

Really only you can answer that question. Do you enjoy coming to work? Do you look forward to the challenges that your business brings every day? If you don't enjoy it, then it is simply what makes more money sense question and you should be going over those numbers with your accountant. However, I look down the road and think, 'Now what?'. What will you fill the space with?

[A-Land]

Before going any further, you should check out what the broker has been up to. Be very wary of anybody that is asking to come in and look at the books. They should have no problem disclosing the deals they have been working on if they are a legit broker. This economy has forced a lot of people to get into things they are not qualified to do in order to try to make ends meet. It doesn't make them bad people - folks are just desperate.

The answer to "should I sell" is obviously one that goes beyond numbers. But if you just look at the scenario - best case - you have one million in cash. Is there something else you can do with it that you have experience in? Would you know how to handle rental property? Putting that money into a CD to earn 5% is not going to happen now or anytime soon so the theoretical $50,000/year that asset might generate is a little easier said than done.

The best answer is probably to look into hiring a consultant to come in and look at your business and see their independent opinion and weigh it against your health. Maybe it would be easier to hire someone to come in and take over more of your current responsibilities. But are you still making money after hiring that person? Who knows. A good consultant who has experience in this kind of thing would be well worth the price.

[Landscraper1]

Originally Posted by 32vld

Any one can appear healthy and wind up taking a dirt nap the next day.

So you saying your sick does not mean anything unless your doc says how much time you can do the work, how long you have left to live.

Then if the doc sees you living long term but not able to do the work but you can still do the sales and management and let field managers to the stressful work.

The possibilities of what if's is endless so I will not even try to do any more.

Again you leave the original questions unanswered.

You make another announcement that does nothing to clear the situation but only adds a 10 cubic yard load of new questions to the original list of questions your first announcement created.

In the end you as any one else has to take in the hold story to come up with the best answer. Everything is not black and white and sometimes it needs to be.

I think I have answered enough of questions here for you to get an idea of my situation. You pretty much want a documentary of my life to answer a simple question. The original question is "what would you do?". Look at your life and THINK. If I had a company like that, would I sell or continue making a living with it? Simple question, one posted for curiosity, not because I am going to make a life change on your opinion.

[Landscraper1]

Originally Posted by NC Greenscaper

Really only you can answer that question. Do you enjoy coming to work? Do you look forward to the challenges that your business brings every day? If you don't enjoy it, then it is simply what makes more money sense question and you should be going over those numbers with your accountant. However, I look down the road and think, 'Now what?'. What will you fill the space with?

Great comments!!! That's exactly the thought process I am going through.

[Landscraper1]

Originally Posted by A-Land

Before going any further, you should check out what the broker has been up to. Be very wary of anybody that is asking to come in and look at the books. They should have no problem disclosing the deals they have been working on if they are a legit broker. This economy has forced a lot of people to get into things they are not qualified to do in order to try to make ends meet. It doesn't make them bad people - folks are just desperate.

The answer to "should I sell" is obviously one that goes beyond numbers. But if you just look at the scenario - best case - you have one million in cash. Is there something else you can do with it that you have experience in? Would you know how to handle rental property? Putting that money into a CD to earn 5% is not going to happen now or anytime soon so the theoretical $50,000/year that asset might generate is a little easier said than done.

The best answer is probably to look into hiring a consultant to come in and look at your business and see their independent opinion and weigh it against your health. Maybe it would be easier to hire someone to come in and take over more of your current responsibilities. But are you still making money after hiring that person? Who knows. A good consultant who has experience in this kind of thing would be well worth the price.

I agree with you on the CD. Last thing I would do is invest in Cd's or stocks. I actually don't keep much in any bank or other accounts. I have always invested in real estate or reinvested into the business.

As for hiring someone to take on more responsibilities, I have a problem with. I had a manager I trusted, steal thousands from me and a partner in the LC business that kept us in the red for many years. It's now that I have been on my own for the past 7 yrs that I have built a profitable business. So, other than my wife, who runs the office full time, I have trust issues.

I do like your idea of a consultant. I may look into that. Thanks.

[wbw]

My question would be "Is the buyer alreadyin your market?"

If not what effect will they have on your future business as a competitor?

Will they lower your margins due to increased competition?

[AintNoFun]

i would sell in a minute and not look back..

what do you think the future of this industry is? only going to get harder and harder to turn a profit...

[snomaha]

Originally Posted by Landscraper1

Lately, I have been contacted by a sales broker(about 3 times in the last month), to go over the possibility of selling my business. He is looking into it for a large multi-million dollar LC that is interrested in buying my company.

This got me thinking, should I even consider an offer? I know I can get about $1mil for it but, what then. I am in good financial condition, the company is doing great, and I am only 45. I have always thought of selling when I retire in the future. Now is too soon, but who's to say I would have someone to buy later.

What would you do?

Still trying to get my head around 1 million + selling price. Your grossing 1.4m and for arguments sake netting 10%?? or 140k. If the big LCO who is buying you out is using approx 90k in after tax profit to pay off the debt it would take him over 10 years...Maybe you have a crazy amounts of assets? Typically a big LCO doesnt want the hard assets but just the book of buiness. sign me up for selling if you can get that kind of money!