EasyMoney_in_NC
New Contributor
I have a small local business that is family owed (I own 49%). It has grown by leaps and bounds over the last 5 years, but IMHO is solely linked to the massive wave of new construction over the same period that we have experienced here.
Here's my quandary. I have a competitor (who himself has just bought this competing business and is now looking at mine) who wants to buy my business for pretty nice money (on the surface).
With very little work on my part, this business has supported my life in every way, as well as the rest of my family (of which Father wants to now retire). If we sell, we will loose all of the "perks" associated with running our lives as one big "expense". Yes we will have the cash from the sale, but the interest (assuming the $$ was set aside in a CD lets say) wouldn't even come close to the value that profits have represented in the way of income/distributions/expense accounts etc.....
I could buy Father out and keep the business or sell it and cash out. To this point, the way I have set this up for you, one would say "just keep it, no brainer".
Getting back to the success of it, if my gut is correct and this has grown because of new construction, then it would stand to reason that if new construction slows, my growth will also slow and may even recede. Some of the beauty of the business is residual income from each customer each year, so as long as I maintain my customer count, the bus. will still be somewhat profitable, but nothing like if it continues to grow. I wonder if its time to pull a Jerry Seinfeld and get out on top (our company is highly repected in town compared to the other competitors).
This is a high liability business and as some of you may have read in the past, that bothers me greatly from the standpoint of risking my rental RE to credtiors. I don't want to get into the asset protection discussion again, I understand what would really need to be done to protect.......lets keep to the question at hand.
With 2 small children (one 8 months old) I really am looking to simplify my life for a while. I am SOOOO on the fence about this. I could sell and make a nice pot of change, I could retain, and continue with the business and come what may.......
Curious as to opinions, good bad or indifferent. Don't be shy My wife says keep, Mother and Father say SELL!!! Obviously we are at two different points in our respective lives.......but should I move on to try something else or keep in a cash cow that may or may not continue to prosper and that I have no real passion for?
TIA
Here's my quandary. I have a competitor (who himself has just bought this competing business and is now looking at mine) who wants to buy my business for pretty nice money (on the surface).
With very little work on my part, this business has supported my life in every way, as well as the rest of my family (of which Father wants to now retire). If we sell, we will loose all of the "perks" associated with running our lives as one big "expense". Yes we will have the cash from the sale, but the interest (assuming the $$ was set aside in a CD lets say) wouldn't even come close to the value that profits have represented in the way of income/distributions/expense accounts etc.....
I could buy Father out and keep the business or sell it and cash out. To this point, the way I have set this up for you, one would say "just keep it, no brainer".
Getting back to the success of it, if my gut is correct and this has grown because of new construction, then it would stand to reason that if new construction slows, my growth will also slow and may even recede. Some of the beauty of the business is residual income from each customer each year, so as long as I maintain my customer count, the bus. will still be somewhat profitable, but nothing like if it continues to grow. I wonder if its time to pull a Jerry Seinfeld and get out on top (our company is highly repected in town compared to the other competitors).
This is a high liability business and as some of you may have read in the past, that bothers me greatly from the standpoint of risking my rental RE to credtiors. I don't want to get into the asset protection discussion again, I understand what would really need to be done to protect.......lets keep to the question at hand.
With 2 small children (one 8 months old) I really am looking to simplify my life for a while. I am SOOOO on the fence about this. I could sell and make a nice pot of change, I could retain, and continue with the business and come what may.......
Curious as to opinions, good bad or indifferent. Don't be shy My wife says keep, Mother and Father say SELL!!! Obviously we are at two different points in our respective lives.......but should I move on to try something else or keep in a cash cow that may or may not continue to prosper and that I have no real passion for?
TIA
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