Reply to Offers to buy my company basically out of the blue… not sure what to do next

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[quote=Anonymous]I'm an entrepreneur with a company in a similar situation. I get offers once every 1-2 months. I've been struggling with this also. As others have noted, there's no one right way to value a company -- it varies widely by industry. Also, right now there's a lot of capital and few opportunities, so things are getting bid up.

My hesitancy in selling is you cut off the "ATM" that is your business. There's a psychological barrier in how you spend (at least it would be for me) when you know next year you'll make more money, vs after selling when you're living off "savings" (my plan is not to have to work again once I sell).

I worked with my financial advisors to come up with what number would allow us to sustain our current spending lifestyle, also account for big upcomgin spending (kids college), and how much we'd need in the bank to make that happen living off the investment returns. That's the number I'd be comfortable at selling for, once I'm ready. If I get more, great. If I don't, I'll work another yera and put anothre $1mln+ in my pocket. It's hard to cut off that gravy train.

Besides all that, look closely at taxes as those are a BIG hit at these kinds of numbers. $10mln may end up being $5mln in your pocket after federal and state taxes (remember NIIT comes into play also at the federal level).[/quote]

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