Would you sell up?

enricoh

I got an good offer on my business recently and am finding it hard to decide on it. I'd clear the guts of a mil, which would be 10 times earnings on it. Mid 40s couple of kids, missus has good ps job. No mortgage but no pension. Only do hobby farming, 20 acres - split bales with the contractor. No interest in buying land with the dough, land 20k an acre here.

Got lucky with this business, had a few duds beforehand, i can do it in first gear n has longevity. I think inflation is around 10% this year so a few years of that n it'd be sod all. Zero interest in being a landlord. Is there any bonds etc that are bulletproof- I know nothing about these things. As I write this I think I'm mad to sell! Any thoughts lads?

Donald Trump

I wouldn't be thinking of retiring on a million anyway!

Could you start up another one if you sold this one?

If it was me, I'd also have to consider how I might feel in 10 years if I was walking by the business. It would annoy me to see someone else running what I had created unless I had used the proceeds for something else specific. But that's just me.

patsy_mccabe

Just a few thoughts. Inflation won't stay at 10%. If it does, then we're heading for a deep dark recession. At high inflation, expect interest rates to stay high too. If you do decide to sell, get your head around the tax implications, capital gains etc. With a large tax bill, you have the opportunity to maybe offset some of this against other paper losses or expenses such as depreciation on machinery etc. Worth your while taking to a good accountant in advance.

yosemitesam1

Is your business fairly recession proof or would it come under much pressure in the coming big squeeze?

There's nothing really out there to invest the proceeds into. Probably best to stick with what you know

Reggie.

Could you hold onto some shares of the business so your still getting abit of an income

C0N0R

You know the business best, if you don’t sell is it going to continue to move forward or are you potentially at the limit of its opportunities? If it has room to grow and you want to push it on then hold on, if it’s at its limit I’d be more inclined to sell, especially if you have something else you would be interested in. Are there any opportunities for retaining employment/management if you sold it? Would you be open to that?

I guess ultimately if 1mill is undervaluing it don’t sell, if it’s over valuing it sell it quick!

https://www.boards.ie/discussion/2058267697/would-you-sell-up

I'm figuring from your post your gut is telling you not to sell? I would stay on at it, particularly not having a pension.

cjpm

Do you enjoy the work? Is it strenuous or stressful? Long hours? Away from family? What age profile are you and do you have significant costs coming down the line I.e getting kids through college.

If you enjoy it and the lifestyle that comes with it why not keep at it….

Could consider bringing a partner on board as the year go by. Spread the workload and the reward.

Say my name

You know yourself what it's pulling in. Then the chances of potential competition down the line and why the potential buyer wants to get in now quick and full steam ahead from the start.

If thinking of selling though you could just take the chance of buying a new residence for yourself or go build a new A1 rated dwelling house.

http://daft.ie/for-sale/detached-house-kellistown-stud-kellistown-stud-kellistown-co-carlow/4263403

cute geoge

Could you go 50/50

tabby aspreme

Sell up, with your experience and track record of setting up a successful business you should be very employable, or you could go to college for a few years if there is some line of work you are interested in

Still stihl waters 3

Sell it and buy a 100 acres somewhere obviously

blackbox

https://www.boards.ie/discussion/comment/119751548#Comment_119751548

Do you think you would make 100,000 per year from 100 acres?

Large bottle small glass

Ignore rest of my post if you like but TALK TO A FINANCIAL PLANNER

My instinct would be not to sell.

The no pension stands out to me. It would be trivial at 100k salary to pay low tax rate, pay yourself 40k ish, take another 10k ish in expenses and pay 40k plus into a pension.

You'd build a nice wad quick enough in 10 years and not pay any high tax, while still paying prsi for future public pension.

This is assuming you have a limited company.

Still stihl waters 3

https://www.boards.ie/discussion/comment/119751576#Comment_119751576

Youd have that made in the first 6 months easy

blue5000

OP you have a couple of kids, is the business stopping you spending time with them? They won’t be small for long. The decision might depend on how much quality time you have. Heard of a couple of people that sold up in the Celtic tiger boom, then bought it back for less later on. Some of them stayed on to manage it after they sold it, this might be an option for you.

enricoh

https://www.boards.ie/discussion/comment/119750872#Comment_119750872

Thanks all. It took a hit when the tiger calved but was still decent enough, I know the next couple of years will be the same but I've no borrowings like I did then.

enricoh

https://www.boards.ie/discussion/comment/119750922#Comment_119750922

No but I had a couple of other gigs before n could turn my hand back at either of them handy enough. Neither would be as lucrative n my back wouldn't appreciate me going at either again!

enricoh

https://www.boards.ie/discussion/comment/119751162#Comment_119751162

I don't mind it, not really stressful, hours reasonable - bit of hassle getting staff the last year- same as everyone else!. Mid 40s n Kids 10 years away from college.

Yeah I reckon I'll keep on trucking, was never as indecisive in my life so I said I'd ask on here from a few wizened heads! Thanks all.

enricoh

https://www.boards.ie/discussion/comment/119751521#Comment_119751521

My college days are well n truly over! Doesn't seem as much craic these days anyway! I'd be virtually unemployable after doing my own thing so long. I'd set up a small one man gig if I was to sell up, but every hour goes on I'm less inclined to sell. Ta.

enricoh

A stud farm- I'd be bankrupt after 6 months tops. My knowledge of horses is limited to a few hours in the pub the last day of Cheltenham!

893bet

If you are taking 100k from it, and not stressed by it then keep trucking but start planning what’s next so that in 5 years time you don’t be here with the same decision.

elperello

No problem selling but only do it for a positive reason.

Selling for a negative reason like being tired of the work could lead to lack of direction and regrets.

Better to know what you want to do with your life and the money before you sell.

So to sum up, hang in there make a plan and then sell.

Sell some keep some if possible.

Think of the handy life you could have with that kinda nest egg.

Plenty of jobs at the moment to keep you rocking over. You could also get a very good education from that money.

Tonynewholland

https://www.boards.ie/discussion/2058267697/would-you-sell-up

Why didn't you start a pension before this. If it's a good setup why sell. Maybe in 10 years or so one of your children might be interested. At your age you still need something to get up for everyday unless you want to go at something else.

enricoh

https://www.boards.ie/discussion/comment/119752386#Comment_119752386

Yeah, I reckon I'll keep it for 10 years at least and see if any of the kids have any heed. Anything I'd be useful at would be more stress for less dough. Cheers

Say my name

https://www.boards.ie/discussion/comment/119752361#Comment_119752361

I want commission on this one! 😁

http://daft.ie/for-sale/detached-house-kilmannock-house-on-82-5-acres-campile-co-wexford/4248291

https://www.boards.ie/discussion/2058267697/would-you-sell-up

It might be a good time to sell if there is a pending recession. If you can do it in 1st gear then maybe you find it boring?

youllbemine

https://www.boards.ie/discussion/comment/119753134#Comment_119753134

Beautiful house a d land but imagine trying to heat the place. You'd want a full time house keeper.

Say my name

https://www.boards.ie/discussion/comment/119754854#Comment_119754854

It'd want to be all gutted and redone to modern standards. Then you probably have the troubles withstanding of a listed building. But if done right it'd be a fair mansion. You could invite the Collison brothers over to a gaff like that.

Large bottle small glass

https://www.boards.ie/discussion/comment/119755080#Comment_119755080

It's 1 million he's being offered not 10 million.

A money pit

funkey_monkey

Sell up, buy some sucklers and go contracting!!!

Is there any clause in the sale contract that would prevent you from entering the same industry again? Would you want to remain in it? What would you do if you took up their offer - a long time between now and retirement?

Only you can really tell how the future looks for your business. As said above, you need to speak to a good financial planner to determine where you need to be. I'm not sure €1m will see you out - it really depends on your lifestyle. Some boys can live off the fumes of a fiver and others spend like crazy, but an independant financial planner can advise better.

Was €1m the opening bid? Have you had the business valued by KPMG/Deloitte/etc? If it was me, I'd get it valued and if doing a private sale add on a bit more as the buyer is getting exclusivity.

Reggie.

The front lawn of that place would do me

https://www.boards.ie/discussion/comment/119757125#Comment_119757125

I think similar thoughts when I'm away on farm walks, if I could just take one field like this home...................

Bass Reeves

OP a million might sound a lot of money. However how much will you really walk away with after CGT. 700-750k.

In 15 years you will earn 1.5 million off it. However the economics change entirely. You can avail of business retirement relief at 55. That means you can take 750k tax free. You children will be most of the way through college

Put as much as possible in to a pension fund.

This then give you options. If o e of the kids is interested you can semi retire and draw 50% of present income taking 1-2 days off a week and your weekends as well. Finish early at 4pm etc.

If not sell it then. Extract a super dividend at 0% tax and use the rest of the 750 relief to shelter some of the CGT. Hopefully the business will be worth more as well.

enricoh

Thanks folks, rang him yesterday to say no deal. I slept like a baby last night after a week of crap sleep so that alone tells me I was right! I can go back to giving out about work now!!

K.G.

https://www.boards.ie/discussion/comment/119758655#Comment_119758655

Sometimes looking at some of the videos on YouTube we do say are we wasting our time.fine fields of flat land where as in some of our places there isn't a third headland.every job you do here must be planned out from the first load in the gate before you start to allow for hills and wet patches

wrangler

https://www.boards.ie/discussion/comment/119773897#Comment_119773897

My decision to retire was made for me,

But your age it'd be important that you'd have a plan not just do it on spec, your lack of sleep could be more to do with an aversion to change.

Or the fact that the offer wasn't atttractive enough

kerryjack

First off well done A great achievement if it was me I would Sell up and try something different , A man that set up and ran a million euro business would be highly prized and could walk in to any business and get well paid for it.There is plenty lads straightout of college that think they know it all but are green behind the years and haven 't life experience , probably take a year out buy a luxury camper van and take the family around Europe for a year. Come back fresh and go at it again.

straight

https://www.boards.ie/discussion/comment/119778178#Comment_119778178

You will be coming back from Europe alone if you are planning on spending a year with your family in a camper van. 😉

enricoh

Thanks, I told the missus I might take it n relocate to South America under a different identity so she couldn't find me!

I was at engineering before which was more interesting n challenging so I might look into getting back to do a couple days a week at it. Get some half retired fella to hold the fort a couple of days a week. A mate had to pull the plug on his cafe during the week n is heartbroken so I know it was a fortunate predicament to be in. Thanks all.

893bet

Looking at this objectively a lot of people are sitting on million quid assets here.

million quid assets that come within an assess roar of taking out 100k profit a year.

70-80 acres of middling land, a 4 bay slatted shed a tractor and a few bits, plus stock and entitlements. A million wouldn’t buy it.