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Would you sell up?

  • 16-10-2022 9:29am
    Registered Users Posts: 4,478 ✭✭✭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?



  • Registered Users Posts: 17,860 ✭✭✭✭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.

  • Registered Users Posts: 10,316 ✭✭✭✭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.

    'To a man with a hammer, everything looks like a nail'

  • Registered Users Posts: 2,850 ✭✭✭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

  • Registered Users Posts: 24,247 ✭✭✭✭Reggie.

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

  • Registered Users Posts: 2,637 ✭✭✭Jjameson

    Inflation is close to peaking. Interest rates are rising, wages aren’t keeping pace. I think on your description I’d muddle on for 10 years and then flog it and buy a few more acres to hobby farm/pass to kids.

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  • Registered Users Posts: 1,912 ✭✭✭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!

  • 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.

  • Registered Users Posts: 1,342 ✭✭✭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.

  • Registered Users Posts: 10,544 ✭✭✭✭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.

  • Registered Users Posts: 2,617 ✭✭✭cute geoge

    Could you go 50/50

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  • Registered Users Posts: 3,693 ✭✭✭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

  • Registered Users Posts: 984 ✭✭✭Still stihl waters 3

    Sell it and buy a 100 acres somewhere obviously

  • Registered Users Posts: 3,780 ✭✭✭blackbox

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

  • Registered Users Posts: 1,587 ✭✭✭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.

  • Registered Users Posts: 984 ✭✭✭Still stihl waters 3

    Youd have that made in the first 6 months easy

  • Moderators, Society & Culture Moderators Posts: 12,464 Mod ✭✭✭✭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.

    If the seat's wet, sit on yer hat, a cool head is better than a wet ar5e.

  • Registered Users Posts: 4,478 ✭✭✭enricoh

    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.

  • Registered Users Posts: 4,478 ✭✭✭enricoh

    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!

  • Registered Users Posts: 4,478 ✭✭✭enricoh

    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.

  • Registered Users Posts: 4,478 ✭✭✭enricoh

    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.

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  • Registered Users Posts: 4,478 ✭✭✭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!

  • Registered Users Posts: 8,415 ✭✭✭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.

  • Registered Users Posts: 12,811 ✭✭✭✭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.

  • Registered Users Posts: 1,158 ✭✭✭thinkabouit

    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.

  • Registered Users Posts: 1,016 ✭✭✭Tonynewholland

    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.

  • Registered Users Posts: 4,478 ✭✭✭enricoh

    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

  • 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?

  • Registered Users Posts: 151 ✭✭youllbemine

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

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  • Registered Users Posts: 10,544 ✭✭✭✭Say my name

    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.