OK I got an offer on my business. It's not what I wanted but it is a nice chunk of change. The other option we are discussing is having them buy in 60% controlling interest of the business. The company buying me out is a bigger one and can probably do a lot with it that I couldn't myself. I am just not sure I want to stay in at 40%.
I did the math. They think they can easily grow my business 50% each year over the next 4 years. At that rate it would only benefit be short term... maybe 2 years with the initial 60% paid. After the 3rd year I would be better off not selling out. This is also assuming if I did this alone I would not grow but only maintain the current income. It's likely I will be able to grow it more on my own.
On the flip side, that is their conservative estimate. If they were to grow it 100% or more each year with the resources they have then I would be better off selling it at 60% and getting my 40% profit share.
If I sold my business off completely then of course I wouldn't look back. Oh the decisions... I could pocket it all. I could use it all to start a new business. I could divide it up. This is where having solid concrete goals is important. If I knew where I wanted to be in 10 years from now it would make this decision a LOT easier.
I did the math. They think they can easily grow my business 50% each year over the next 4 years. At that rate it would only benefit be short term... maybe 2 years with the initial 60% paid. After the 3rd year I would be better off not selling out. This is also assuming if I did this alone I would not grow but only maintain the current income. It's likely I will be able to grow it more on my own.
On the flip side, that is their conservative estimate. If they were to grow it 100% or more each year with the resources they have then I would be better off selling it at 60% and getting my 40% profit share.
If I sold my business off completely then of course I wouldn't look back. Oh the decisions... I could pocket it all. I could use it all to start a new business. I could divide it up. This is where having solid concrete goals is important. If I knew where I wanted to be in 10 years from now it would make this decision a LOT easier.
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