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

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[quote=Anonymous][quote=Anonymous]I own a pretty successful business that generates $2M-$2.5M net profit annually. For the last few years I’ve had people generically approach me and ask if I would sell. I always say if the numbers were right, yes. Thus far it hadn’t gone anywhere.

Yesterday I had an ambush lunch where I was asked at what price I would sell. The deal involved my staying on board for a few years after the sale, investing some of my sale proceeds and then making more money when that company presumably sells again (classic private equity deal). Based on past conversations I through out that I would sell at a $8-$10M price, based on how long I had to stay and any earn out provisions (thresholds that had to be met for me get fully paid).

Today I got an entirely unrelated offer from a very big player at $10M or so cash at the table. 1 year commitment to stay for a small additional earn out.

I have plenty of other assets and some other businesses. Id probably still make $1M-$1.5M from those sources so I obviously it’s not a question of is it enough money for me. I don’t have to sell. I could do this another 10-20 years and would clearly make a lot more. But on the flip side it is extremely stressful and I could walk. Id probably do something else after but no clue what.

My problem is that i have no idea whether the offer is a good offer. From what I know it’s good and gut instinct say that I can push it up a bit and during due diligence they will push it back down a bit. Im Mindful of tax increases. They say that they can close by year end and the tax difference is about $1M if I close this year as opposed to next of the proposed increases go into effect.

Where do I go from here?  [/quote]

Hey cheapskate, go hire an evaluator instead of scrounging for free advice here.[/quote]

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