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Would you sell???

Discussion in 'Business Operations' started by Landscraper1, Feb 24, 2012.

  1. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    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.:confused:

    What would you do?
     
  2. White Gardens

    White Gardens LawnSite Fanatic
    Posts: 6,783

    If you could get one million for it, then I'd go for it.

    Invest the money, live off the interest and get a part-time job until you retire.


    .....
     
  3. ox6603

    ox6603 LawnSite Member
    from SE PA
    Posts: 84

    Bah, don't sell. Heck maybe not ever. If you can find a competent person to run it when you're ready to retire you can just sit back and collect. Or really I should say, if you can find that person NOW, and groom them until you retire.
     
  4. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Just another poster that leaves out the important facts but wants good advice.

    Is your home paid off?
    If you want to move after you retire or buy a second retirement home can you afford to?
    Is your business debt free?
    Are you debt free?
    How much is your personal wealth?
    How much is your business assets worth?
    Is your business growing, or has it leveled off, do you want to grow it more, is there room for growth?
    How much more income/profit will your business bring in when you hit 55, 62,67?

    If you can make another $1 mil profit then you can still sell your business for that big offer in ten more years.

    Do you have children that will want to take the business over?

    What you think is being in good financial health and the answers to the above questions may not match.

    What money has this broker offered?

    Remember the first offer is not their best offer.

    Not knowing where you are financially getting $1,000,000 will net you less after paying taxes on the profit of the sale.

    Even if you cleared 1 mil at 5% interest that will yield $50,000 a year before taxes will net $38,000.

    You tell us can you live on $38,000?

    Heck anyone can live on $38,000 a year.

    Will $38,000 give you the life style you want if you live for the another 45 years?

    Then being 45 what do you do to keep mentally and physically active to stay healthy?

    Or did you not really post to get answers or just brag that you can sell your business for $1,000,000?

    Which is just equally annoying.

    No matter what your motivation for posting this I have to congradulate you on your success. I'm sure 9 out of 10 posters here (I am one of the nine) hope to get a business worth that much.

     
    Last edited: Feb 24, 2012
  5. Landrus2

    Landrus2 LawnSite Platinum Member
    Posts: 4,811

    if he pays cash don't look back :weightlifter:
    how many employee's you have :confused:
     
  6. prizeprop

    prizeprop LawnSite Senior Member
    Posts: 820

    the first thing i would do is find out what your tax liability is on that million, i assume 35% +/-.
     
  7. MOturkey

    MOturkey LawnSite Silver Member
    Posts: 2,741

    That's about $999,000 more than my business is worth, but here is my advice, for what it is worth. First of all, after brokerage fees and Uncle Sam, you probably are going to end up with substantially less than one million. Investing is great, but unless you put it into something really safe, there is a huge risk in today's economic climate. Something really safe normally translates to a very low return. I'm guessing if your business is this successful you and your family are accustomed to a pretty good lifestyle, which means in all likelihood, you would be tapping into the principal on a pretty regular basis to maintain your lifestyle. In reality, what type of income could you expect from a part time job, and could you be satisfied with that after running what I assume is a fairly large company?

    You are only 45, which means there is a very good chance you will live another 40 years or more, and, in all likelihood, inflation is going to keep on marching along just like it has for the last 40. I'm not trying to tell you not to go for it, but you really need to run a lot of numbers to see if it is prudent to do so. Early retirement is great, but the one thing I've observed through the years is the number of people who retired early and now complain that inflation has eaten up what they, at that time, thought was a very good income. I likely will be faced with the same situation if I live another 20 years, but I retired at age 58, so, statistically, I have far fewer years than you to plan for. Good luck to you.
     
  8. fastlane

    fastlane LawnSite Senior Member
    Posts: 347

    Will your non compete agreement stop you from starting a new company or only contacting current customers ?
     
  9. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 857

    Just curious - how do you know it is worth 1m? have you had a valuation done?
     
  10. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    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?
     

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