When is it time to sell?

smz89

LawnSite Member
Hello everyone, I am wondering how you know when the right time to sell is.?

I hope I do not give to much detail but I hope it may help best assist my decision.

To do my best to make a long story short.. I have owned a lawn care company for the past 10 years. I ended up meeting an amazing woman who is in the air force. We and our kids have finally gotten moved to another state due to her job.

We have been moved for almost 2 years now and I kept the company and have made it work. First year things went great. This year has been tough. I’ve had more employees this year then the last 9 combined. I have had to come back and attend to the business much more then I obviously would like to be. I am sure to some it says obviously sell and to other not. It has been a very hard decision to keep it and move on. Or to figure out how to make it work and to keep it.

This is where I hope it isn’t to much detail but the last two years I have grossed 220-230 each year and netted 130k each year. I have an offer on the table to fully buy me out for 250k. Equipment being valued at 130k. I do not have anything yet going in our new state as when I have tried this company still takes so much of my effort and time.

Am I crazy for keeping it and hoping to make it work knowing it cannot grow any more without me there. Easier to lose work due to quality without me there and so forth.. or am I crazy to not take the money and run.

Been dealing with this heavily on my mind the last few weeks and I continue to go back and forth each way not knowing what I truly want to do.

Thanks
 

ltdlawn

LawnSite Platinum Member
Location
knoxville
Is the net worth the headaches or is the offer your reward for handling the headaches... that is your real question Just my two cents
 

walkinonwater27

LawnSite Senior Member
Location
ct
equipment is worth 130k, so your getting 120k one time. or you could be making 130k every year. you may not ever get to the profit range your in right now. building a business is easy, building a name can take a lifetime. you have a great thing going, back on your feet soldier!! now drop n give me 20
 

Mark Oomkes

LawnSite Fanatic
Location
Grand Rapids, MI
Someone is going to pay you $250k cash for your bizness? With equipment valued at $130k? And it won't run without you?

There's an easy answer to this.

On edit...you're grossing $220-230K with equipment valued at $130K???
 

AlohaMowing

LawnSite Senior Member
Location
Hilo, HI
You have a lot of issues to think about. Among them:
  • Is this established business in the location you would want to be if you could be anywhere?
  • What are the career plans of your woman? Is she planning to stay in the USAF until retirement? If so, how soon would that be and what rank/income could be expected at retirement?
  • Is there a risk of her being transferred not just to a different state, but to a distant country? How would that affect your ability to maintain oversight?
  • Even if you hire a manager at a generous salary, would you actually be free of the business, or would you need to return regularly and stay in touch? To get a manager who will need zero oversight is not going to happen.
  • Is there debt on the equipment that would need to be paid off, or would you be able to invest that offered $250K and make money for you? What kind of return might you get on it?
  • If you were free of the need to oversee your distant business, would you be able to get a satisfying job in your current location? While it may not equal your current net of $130k/year, you need to put some value on being free of the stress of ownership and associated risks.
  • What do you see the economy doing over the next year or three? If you are among those who anticipate a recession, consider that the value of the business may be greater today than it will be next year.
 

weeze

LawnSite Fanatic
where are you located? i could almost retire on that amount of money and i have 25 more years to work before i reach retirement age. :laugh:

go find another job to live on and take the 250k and put it in an IRA....or take the 250k and pay the house off or something. then you don't have to make so much money to live. lots of things you could do to be setup for the rest of your life with that much money.
 

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