selling out

Discussion in 'Business Operations' started by delanceyburnett, Jun 4, 2008.

  1. delanceyburnett

    delanceyburnett LawnSite Member
    Posts: 43

    O.k. I need a little feed back on this one. A national chain has offered to buy me out . they are wanting my contracts and mowing equip. w/ trailer.the profit would be 100,000 . this would clear all my personal debt and put 40,000 in large growth mutual funds if i play my cards right. I know we are not financial advisers here on lawn site. i am just looking for past experiances or any knowledge on preventing the capital gains tax on 100,000. I am o.k with being debt free and they are offering me a job to run the crews in my area . the pros out way the cons.
  2. grass2cash

    grass2cash LawnSite Member
    Posts: 137

  3. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,785

    you need to ask yourself, if they can buy you out and then hire you on and still make money, wouldnt you be better off on your own??
  4. Howard Roark

    Howard Roark LawnSite Senior Member
    from Texas
    Posts: 806

    Marble Falls eh? We're in Austin.

    What's the company that wants ya?

    I would honest assess what it is you wish to do with your life. If you feel you've built a fine business, but have other ambitions in life than what this business has to offer, than yes, THIS would be the time to go for it.

    Debt Free is the way to go, just be sure after this meal ticket you can never go back to the "dark side" of debt!

    Best Wishes!
  5. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Posts: 346

    Define "profit" please...
    Have you taken into account all the depreciation you've deducted over the years? If not, your actual capital gains may be more than $100k.

    Also, are you a c corp? or sole proprietor/s corp?

    Note that cap gains are not bad...they are much less than "ordinary" income so don't fret it. However, do make sure you include all your basis items in order to reduce cap gains to as low as possible.
  6. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    Unfortunately, you will never get rich as you could running someone else's lawn business.

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