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Anyone close shop their shop? I'm looking at getting out of the EC business. Should I sell it to a dedicated employee who has expressed interest in buying me out? I have a succession plan and I would be willing to stay on a predetermined amount of time to transition to the new ownership. Just burnt out and want to reduce my stress level and eventually retire.
 

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NJ-IEC
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Maybe strike a deal with the employee who wants to buy it that you will sell to him on a number of conditions and one of those conditions is a small percentage of any future profits the company generates.
 

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animal lover /rat bastard
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my neighbor sold his elevator business when he was ready to retire and get out. He had one partner. He worked out a lump sum over 5 or 6 years to spread out the tax, and he stayed on part time for a salary. he worked as an inspector part time so he could rack up some expenses, especially training/conferences in nice places like vegas, hawaii, etc.
 

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Maybe strike a deal with the employee who wants to buy it that you will sell to him on a number of conditions and one of those conditions is a small percentage of any future profits the company generates.
Ive heard of guys doing it this way.

They usually put a predetermined time to end the agreement.
 

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IBEW L.U. 1852
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Sell it to the guys who have been valued employees for years....

Take payments... just like a loan....
I finally agree with B4T.......this is exactly how its going with me and my (former) boss. He takes payments and gets a share of the profits. Its a three year term and we have almost 8 months of it gone now.

He still helps a lot with the bidding and in the office while I take care of everything else.
 

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Small Potatoes
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What's your avg net profit per year over last 5 yrs ?
A more accurate question would be, "What is your net profit with owners compensation and without owners compensation."

Otherwise, how do you know if he's paying himself a salary? If he isn't, then anything he quotes you is overstated.

This is where the problems and misunderstandings come in when determining how a seller of a business receives profits after the acquisition.
 

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flyboy said:
A more accurate question would be, "What is your net profit with owners compensation and without owners compensation." Otherwise, how do you know if he's paying himself a salary? If he isn't, then anything he quotes you is overstated. This is where the problems and misunderstandings come in when determining how a seller of a business receives profits after the acquisition.
Yes, that was implied but i should have clarified.
 

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Have you been making money?

Is there any way that you can replace yourself with a paid employee while you go take a break for a while?
 
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