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INTRO My route to freedom, helped by corporate buyout (hopefully)

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Franklz

New Contributor
Jun 19, 2021
2
1
12
Norway
Hi guys,
My name is frank, and im now 31 years old. I started as a corporate employee in the norwegian oil sector (Maintenance Engineer/sales, offshore cranes), and got layed of there in the 2015 oil crash (of 500 people, only 128 remained, and i was not one of them). I found a new job as a production manager on a local plastic product factory. The job was horrible, but extremely educational.
I disagreed with the CEO about alot of things and ended up quitting the job, and being hired back for the double salary the train my replacement for a period.

I decided working under incompetent leadership was not enjoyable, and decided to start on my own as a consultant. Before i got the company of the ground properly, a former college from the plastic factory called me. He had retired, and one of the major clients called him and wanted help them to set up a factory. ( They did not like my old employer and wanted better service and products made)
We went to the client corporation headquarters for a meeting, and agreed to help them out. we got 15 % each of equity in the company, and they bankrolled it.
We have since had a nice development, and our corporate overlords buy 90% of our available time. we have scaled from 300 000k dollars to years budget of almost 2 million USD revenue, with decent profits.

I now work at the company as we started as a project engineer, and are involved in all aspects of the daily operation.

Its a nice gig, but i do not have complete control of my destiny, since i have corporate overlords. I have gotten som signals that they might want to buy our stocks (all other daugher companys have had this happen to them, i think we are the last ones with equity left).

I recently discovered the fast land/unscripted so all this is quite new to me. My goal has been to pay off my house, and have no debt. (i do not know how much i will be payed for my stocks in the company but i think it will be quite decent, since we have a 2mill USD revenue and 200 000k profit this year)
Is this the best way to freedom, or should my eventual stock proceeds go to setting up a money system or starting a new company?
I think i can make a consultant company again in the future since my skills are in high demand here (engineer plastic pipe systems and products for land based fish farms). but the problem with this is that it requires me to sell my time, and that is not something i want to do anyore.

If you guys have any suggestions, i would like to hear them. Feel free to ask if you have any questions.

Regards, Frank
@MJ DeMarco
 
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Liberty84

New Contributor
Jun 19, 2021
5
3
11
Hi Frank!
Welcome, I'm new here as well.
I don't know the multiples for your specific industry, at what valuation do you think the buyout would happen?
Let's say they apply a 10x profit, that would leave you with 300k for your 15%, a good breather, but I'm afraid that would be short for real freedom (unless the multiple is a lot more generous). 300k at 5% would get you about 1k/month.

I would definitely look for the path for the Fastlane. You can use that earned money to fuel the new found money system once it's been validated to scale.
 

Franklz

New Contributor
Jun 19, 2021
2
1
12
Norway
Hi Frank!
Welcome, I'm new here as well.
I don't know the multiples for your specific industry, at what valuation do you think the buyout would happen?
Let's say they apply a 10x profit, that would leave you with 300k for your 15%, a good breather, but I'm afraid that would be short for real freedom (unless the multiple is a lot more generous). 300k at 5% would get you about 1k/month.

I would definitely look for the path for the Fastlane. You can use that earned money to fuel the new found money system once it's been validated to scale.

Thanks for your reply Liberty84,
i agree with you that it wont be enough money to set up a proper money system.
That is why i think the best plan would be to pay off my house completely.
Without any house payments, its easyer to take higher risk by starting something new down the line.
i would think it will be somewhere from 6-10x profits.

The hardest part is getting away from selling my time, when my skills are Engineering. i might have to do somethink not related to my expertise.

Regards,
Frank
 
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Liberty84

New Contributor
Jun 19, 2021
5
3
11
Thanks for your reply Liberty84,
i agree with you that it wont be enough money to set up a proper money system.
That is why i think the best plan would be to pay off my house completely.
Without any house payments, its easyer to take higher risk by starting something new down the line.
i would think it will be somewhere from 6-10x profits.

The hardest part is getting away from selling my time, when my skills are Engineering. i might have to do somethink not related to my expertise.

Regards,
Frank
Actually I think it's enough to fuel a money system, just not enough for financial freedom yet.
The money system will get you to financial freedom.
But you should only pour big money into it after it's been validated to be profitable and scalable.

I don't know how much of a burden your mortgage is. Maybe the answer isn't binary.
Maybe you can take a part to lower the burden of the mortgage if it's psychologically draining for you, a part to fuel the new money system. Maybe take a part for income via dividends (if the mortgage is 2% and you can get 4 or 5% income for instance, you use the difference to help pay back the capital).
You may also want to explore other ways to lower the burden if not tried yet, like renegotiating the mortgage for lower interest and/or longer duration. You may even do some house hacking, like if you have an extra room do some airbnb.
 

Classmate

Bronze Contributor
Read Millionaire Fastlane
Apr 21, 2018
87
112
123
"Is this the best way to freedom, or should my eventual stock proceeds go to setting up a money system or starting a new company?"

Starting a new company is hard. The chances are against you, and you need to be well aware of that.

That being said, is the only way you can retire early and stuff like that.
There isn't anyone here who can give you a straight answer about this. It is a "more risk -> more reward" thing, and in the end, you're the one who need to decide if you're willing to take the risk or not.
That's independent on any sector, or circunstance.
The truth is that, in any sector, you're competing against big multinationals corporate business and they can wipe you out, if you don't have the proper investment any time of the day. Or even if you have...
look at what Uber is doing to the taxi drivers. They have the investment and they're trying to take out the taxi drivers out of business, it doesn't matter if the segment of Uber who does transportation is profitable at short and medium term, or not. They're in it for the long term, and have the investment to back it up,and the taxists (the big majority of them) have not. That's just how the market works.

So, are you willing to take up the risk?
You need to think well. :)

Good luck, welcome here, and I wish you the best <3
 

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