Discussion
I recently made the decision to change my name for this post, a choice I pondered for a few days. While it might seem self-centered, lacking someone to confide in, sharing it online felt like the most reasonable option, especially with a few glasses of wine in hand.
At 45, immersed in wine, holding a glass almost as large as the absurdity of my life unfolding, after 25 years of relentless hustle in the business, my wife, a steadfast companion, and I face a curveball. An offer: £3.5 million for the business, a £150,000 basic salary for three days a week, and a 25% commission on retail center growth. They want to lease both outlets for £52,000 a year. It's mind-blowing. Pinch me, and I might wake up. It took 18 years to build the business; even today, my salary was £60,000 and my wife’s £30,000.
A legitimate offer from a billion-dollar company aligned with my values. With a child in private school, modest pensions, and my wife dreaming of a life beyond order chasing and VAT nightmares, my only concern is figuring out the next steps. They don’t need my wife, so she’s out. Obviously, she is thrilled.
In principle, I've said yes, still in shock. My financial advisor is all for it, while my accountant seems a bit disappointed, possibly because he won't be needed. Now, I'm searching for a solicitor as my current one said they could handle it until they saw the figures. Still in shock.
At 45, immersed in wine, holding a glass almost as large as the absurdity of my life unfolding, after 25 years of relentless hustle in the business, my wife, a steadfast companion, and I face a curveball. An offer: £3.5 million for the business, a £150,000 basic salary for three days a week, and a 25% commission on retail center growth. They want to lease both outlets for £52,000 a year. It's mind-blowing. Pinch me, and I might wake up. It took 18 years to build the business; even today, my salary was £60,000 and my wife’s £30,000.
A legitimate offer from a billion-dollar company aligned with my values. With a child in private school, modest pensions, and my wife dreaming of a life beyond order chasing and VAT nightmares, my only concern is figuring out the next steps. They don’t need my wife, so she’s out. Obviously, she is thrilled.
In principle, I've said yes, still in shock. My financial advisor is all for it, while my accountant seems a bit disappointed, possibly because he won't be needed. Now, I'm searching for a solicitor as my current one said they could handle it until they saw the figures. Still in shock.
Edited by Donkeylover on Sunday 26th November 16:18
I’ll just simply say, it sounds like the dream a lot of people work very hard to achieve. So, bloody well done! I like posts like this as it shows it can happen. Don’t know if it was part of your strategy but actually hope the shock continues for a few days and you can enjoy it!
Again, well done!
Again, well done!
How have you shown business success to this level yet you seek assurance or views from a car internet forum. Trust your instincts, they appear to be proven as good. Seek view and opinion from trusted and known friends and associates. Ignore much of what you see written here , except this post.
Take the deal. Clients of mine did this a few years ago and it's worked out great for them, also a couple who built their business together. With that level of financial security (from the lump sum, and the income it could sustain) you can spend the rest of your lives doing what you want to rather than need to.
Edited by Jules Sunley on Monday 27th November 00:31
Donkeylover said:
I recently made the decision to change my name for this post, a choice I pondered for a few days. While it might seem self-centered, lacking someone to confide in, sharing it online felt like the most reasonable option, especially with a few glasses of wine in hand.
At 45, immersed in wine, holding a glass almost as large as the absurdity of my life unfolding, after 25 years of relentless hustle in the business, my wife, a steadfast companion, and I face a curveball. An offer: £3.5 million for the business, a £150,000 basic salary for three days a week, and a 25% commission on retail center growth. They want to lease both outlets for £52,000 a year. It's mind-blowing. Pinch me, and I might wake up. It took 18 years to build the business; even today, my salary was £60,000 and my wife’s £30,000.
A legitimate offer from a billion-dollar company aligned with my values. With a child in private school, modest pensions, and my wife dreaming of a life beyond order chasing and VAT nightmares, my only concern is figuring out the next steps. They don’t need my wife, so she’s out. Obviously, she is thrilled.
In principle, I've said yes, still in shock. My financial advisor is all for it, while my accountant seems a bit disappointed, possibly because he won't be needed. Now, I'm searching for a solicitor as my current one said they could handle it until they saw the figures. Still in shock.
That sounds like phenominal news, congratulations!At 45, immersed in wine, holding a glass almost as large as the absurdity of my life unfolding, after 25 years of relentless hustle in the business, my wife, a steadfast companion, and I face a curveball. An offer: £3.5 million for the business, a £150,000 basic salary for three days a week, and a 25% commission on retail center growth. They want to lease both outlets for £52,000 a year. It's mind-blowing. Pinch me, and I might wake up. It took 18 years to build the business; even today, my salary was £60,000 and my wife’s £30,000.
A legitimate offer from a billion-dollar company aligned with my values. With a child in private school, modest pensions, and my wife dreaming of a life beyond order chasing and VAT nightmares, my only concern is figuring out the next steps. They don’t need my wife, so she’s out. Obviously, she is thrilled.
In principle, I've said yes, still in shock. My financial advisor is all for it, while my accountant seems a bit disappointed, possibly because he won't be needed. Now, I'm searching for a solicitor as my current one said they could handle it until they saw the figures. Still in shock.
Edited by Donkeylover on Sunday 26th November 16:18
As for a solicitor my corporate colleagues could handle this, right up their street. I could also handle the property side of things as that's my role. If you'd like to discuss further feel free to drop me a PM.
cliffords said:
How have you shown business success to this level yet you seek assurance or views from a car internet forum. Trust your instincts, they appear to be proven as good. Seek view and opinion from trusted and known friends and associates. Ignore much of what you see written here , except this post.
I've got this knack for what I do, and I'm pretty sure I could lead my market to new heights. But you know what held me back? The old employment bugbear – more staff, more stress. HR is like a Rubik's Cube I'm trying to solve while teetering on the tightrope of work-life balance. They're dangling a 25% growth share, but I've got a sneaky suspicion it's more about them wanting a piece of me than the business itself.I haven't taken a sick day in 25 years, except for that one dramatic showdown with food poisoning – not exactly the best pre-client meeting warm-up. My wife’s maternity leave for our two kids clocked in at a grand total of 6 days, and four of those were due to a surprise visit from a premature baby.
We've navigated the tempest – yelling matches, 3 am wake-up calls fueled by worries, and the occasional panic because I forgot to order something. And now, I'm contemplating the wild idea of working just three days a week. At first, I thought I'd use the other two to build another business, but then I had to ask myself, "What am I even thinking?"
So, here's the genius plan: Wrap things up with work on a Wednesday, catch a flight, and embark on a world adventure with the missus every 6 weeks. Life is too short and I have some catching up to do.
Edited by Donkeylover on Sunday 26th November 16:58
Well done, it sounds perfect.
Is any of the consideration being deferred?
From an accountant who's seen it a few times:
- Make sure the solicitor is good. If they are, the accountant doesn't have much to do
- I'm yet to see someone sell, stay on and not get annoyed with the new owners. Make sure you're not tied to them forever and set boundaries
- Make sure your IFA is up to it and bear in mind not all of the funds need to be invested earning them commission
Is any of the consideration being deferred?
From an accountant who's seen it a few times:
- Make sure the solicitor is good. If they are, the accountant doesn't have much to do
- I'm yet to see someone sell, stay on and not get annoyed with the new owners. Make sure you're not tied to them forever and set boundaries
- Make sure your IFA is up to it and bear in mind not all of the funds need to be invested earning them commission
Congratulations! (Assuming it is a good deal)
This advice is good.
1) Don’t forget, investments don’t have to happen immediately. There will be lots of people wanting to manage your money. Their interests do not necessarily align with yours. Take time. Think short term and long term;
2) £3.5 is a nice number, if you can develop a credible plan you believe in. It’s also easy to spend if you don’t.
3) Figure out a plan for if staying on turns out later to not be what you want to do (you don’t need it day 1, but worth thinking about when you get some head space). Plenty of runway at 45, but a long time to go if you feel bored/unfulfilled after exit;
4) It no longer being your baby can be tough. Some can deal with that, some can’t;
6) Figure out who you can talk to about life, money, etc. It’s not a position many find themselves in, so what’s become real for you is abstract for many. Sadly, some will be jealous (not much you can do about that);
7) Get the terms of growth share/deferred payments properly nailed down;
8) Don’t spend too much on wine.
This advice is good.
MaxFromage said:
Well done, it sounds perfect.
Is any of the consideration being deferred?
From an accountant who's seen it a few times:
- Make sure the solicitor is good. If they are, the accountant doesn't have much to do
- I'm yet to see someone sell, stay on and not get annoyed with the new owners. Make sure you're not tied to them forever and set boundaries
- Make sure your IFA is up to it and bear in mind not all of the funds need to be invested earning them commission
Also;Is any of the consideration being deferred?
From an accountant who's seen it a few times:
- Make sure the solicitor is good. If they are, the accountant doesn't have much to do
- I'm yet to see someone sell, stay on and not get annoyed with the new owners. Make sure you're not tied to them forever and set boundaries
- Make sure your IFA is up to it and bear in mind not all of the funds need to be invested earning them commission
1) Don’t forget, investments don’t have to happen immediately. There will be lots of people wanting to manage your money. Their interests do not necessarily align with yours. Take time. Think short term and long term;
2) £3.5 is a nice number, if you can develop a credible plan you believe in. It’s also easy to spend if you don’t.
3) Figure out a plan for if staying on turns out later to not be what you want to do (you don’t need it day 1, but worth thinking about when you get some head space). Plenty of runway at 45, but a long time to go if you feel bored/unfulfilled after exit;
4) It no longer being your baby can be tough. Some can deal with that, some can’t;
Donkeylover said:
They're dangling a 25% growth share, but I've got a sneaky suspicion it's more about them wanting a piece of me than the business itself.
I haven't taken a sick day in 25 years, except for that one dramatic showdown with food poisoning
<snip>
So, here's the genius plan: Wrap things up with work on a Wednesday, catch a flight, and embark on a world adventure with the missus every 6 weeks. Life is too short and I have some catching up to do.
5) Figure out if you can actually make that ^^^ plan stick. Not easy to shift from “always on” to what you’re suggesting…I haven't taken a sick day in 25 years, except for that one dramatic showdown with food poisoning
<snip>
So, here's the genius plan: Wrap things up with work on a Wednesday, catch a flight, and embark on a world adventure with the missus every 6 weeks. Life is too short and I have some catching up to do.
6) Figure out who you can talk to about life, money, etc. It’s not a position many find themselves in, so what’s become real for you is abstract for many. Sadly, some will be jealous (not much you can do about that);
7) Get the terms of growth share/deferred payments properly nailed down;
8) Don’t spend too much on wine.
There’s some great advice above.
I’ve been on the other side of the equation a couple of times buying the businesses. A few tips:
1. Get as much cash up front as you can. Resist earn-outs, deferred and conditional payments. Similarly warranties and indemnities: Some are reasonable, but many are not. If someone is buying your business, then mentality has to be “I have taken this business from X to Y, this is my reward for that. The future is for the next owners to worry about”
2. As you’re staying on in some capacity, make sure you’re REALLY clear and in agreement with the new owners about what they want you to do. I’ve seen too many instances where old founders and new owners fall out because the founders aren’t doing what the new owners want.
3. Equally, respect that once you’ve sold it’s not your business any more. The new owners will almost certainly do things you disagree with; that’s their prerogative, they own it now.
4. Take your time with the money. As others have said, £3.5M is enough to set you up nicely if managed well, but also small enough to easily slip through your fingers if not.
I’ve been on the other side of the equation a couple of times buying the businesses. A few tips:
1. Get as much cash up front as you can. Resist earn-outs, deferred and conditional payments. Similarly warranties and indemnities: Some are reasonable, but many are not. If someone is buying your business, then mentality has to be “I have taken this business from X to Y, this is my reward for that. The future is for the next owners to worry about”
2. As you’re staying on in some capacity, make sure you’re REALLY clear and in agreement with the new owners about what they want you to do. I’ve seen too many instances where old founders and new owners fall out because the founders aren’t doing what the new owners want.
3. Equally, respect that once you’ve sold it’s not your business any more. The new owners will almost certainly do things you disagree with; that’s their prerogative, they own it now.
4. Take your time with the money. As others have said, £3.5M is enough to set you up nicely if managed well, but also small enough to easily slip through your fingers if not.
Edited by brickwall on Sunday 26th November 22:44
cliffords said:
How have you shown business success to this level yet you seek assurance or views from a car internet forum. Trust your instincts, they appear to be proven as good. Seek view and opinion from trusted and known friends and associates. Ignore much of what you see written here , except this post.
Many minds are better than one mind. I get rather tired of people saying 'It's only a car forum'.Well done to the OP; let's hope it's not a case of 'If it seems too good to be true...' etc.
brickwall said:
2. As you’re staying on in some capacity, make sure you’re REALLY clear and in agreement with the new owners about what they want you to do. I’ve seen too many instances where old founders and new owners fall out because the founders aren’t doing what the new owners want.
3. Equally, respect that once you’ve sold it’s not your business any more. The new owners will almost certainly do things you disagree with; that’s their prerogative, they own it now.
This is your main concern. If it was me a clean break would be preferable.3. Equally, respect that once you’ve sold it’s not your business any more. The new owners will almost certainly do things you disagree with; that’s their prerogative, they own it now.
If you do stay on be very sure of the consequences of walking.
trickywoo said:
This is your main concern. If it was me a clean break would be preferable.
There are pros and cons. Staying on could see the business blossom further and accrue additional rewards. Can also open other doors for the future if the acquisition is by a much larger firm (this would be what I’d be asking questions about). Has to be the right firm, and there needs to be an understanding of the founder mindset.
Clean break, in theory, means that you’re out of it an don’t look back. Except if you’ve spent nearly two decades building something you almost certainly will look back from time to time to see how it’s doing.
The other part that people overlook is that a clean break can be extremely emotional. There can be feelings of remorse, mourning, and loss of self-identity. You can feel your relevance has evaporated and be left feeling strangely unfulfilled. Exiting in such circumstances is also completely different to retirement: in the OP’s case, a life changing sum has landed, reducing the need to work but:
1) It doesn’t sound like it was expected. Level of mental preparation will be much lower than for retirement.
2) Depending on lifestyle aspirations he may need another job. May or may not be easy to secure with the same level of intellectual fulfilment or freedom as being one’s own boss; Starting again is an option, but many founders remember the graft and pain…
3) Taking time out can be worthwhile, but many overlook the fact that friends won’t have that luxury. Can be surprisingly isolating if you don’t find positive ways to fill your time.
The key genuinely is in forming a plan and working out how you’re going to keep mentally active. It’s also unlikely to be a bad idea to put effort into getting into better shape. Time spent building a business can really take its toll, and a physical regime can give you time to collect your thoughts.
I know people for whom selling out has been the best thing they ever did. I also know some that spend rather too much time staring into a bottle.
I woke up with a bit of a headache from overindulging. Truly grateful for the valuable advice you've all shared. I plan to refrain from tapping into the lump sum, opting to invest it while relying on my salary. With £150,000 and rental income, we should manage household expenses and still be able to save for pensions. Transitioning to employment for someone else might be a shift, but the prospect of target-led bonuses and growth opportunities should keep me motivated. Only time will reveal how this all unfolds. I'll check in after the sale, and I've settled into my new employee role though im expecting this will be in a years time at least. Excited for what's ahead. Thanks again, everyone.
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