Hypothetical Business Question

[Sam2000]

Say someone offered you 50% more than your business is worth but you didn't like them.

Would you still sell?

Assumption: you don't expect to increase the value of the business and can replace the income it gives you with the money you receive.

 

[John_K]

Depends on why I didn't like them. Personality or crook?

John

 

[Oil Changer]

This plus who is the cliental?

Originally Posted By: John_K
Depends on why I didn't like them. Personality or crook?

John

 

[Sam2000]

Originally Posted By: John_K
Depends on why I didn't like them. Personality or crook?

John


Personality

 

[Sam2000]

Clientele are reasonably anonymous and / or you won't be affected afterwards if they become less happy due to the new owner.

Originally Posted By: Oil Changer
This plus who is the cliental?

Originally Posted By: John_K
Depends on why I didn't like them. Personality or crook?

John

 

[Rolla07]

Take the money and dont worry about them. You win in the end...

 

[Darwin1138]

What about the staff?? would they be outsourced, stripped of benefits or turn into slaves?? Is Mitt Rommney buying??

I would not sell if this new owner will not follow the principles in which the business is based.

 

[TooManyWheels]

Part of that depends on your personal value system. Will the money be enough to compensate you for putting up tolerating someone you don't like going forward with what you created?

I would wonder why he is offering so much more than the business is worth. Will he be capitalizing on the good name of the business, and you?

A related question is - If you don't sell, can he create a similar business easily? This is related to the previous question, as they may be opposite sides of the same coin, the answer being one or the other.

 

[hattaresguy]

I wouldn't care as long as their money was green.

 

[expat]

I'd be glad that someone I don't like gave me too much money.

 

[tomcat27]

Remove the emotion. What's best for you?

 

[Trav]

I deal with lots of people i don't like but business is business, take the money.
Once it becomes known a business is sold it does not reflect on the previous owner at all.

 

[FL_Rob]

Maybe this guy will just flip it.Maybe he knows something you don't
like a pipeline being built on your doorstep or a wal-mart being built land-grab of some kind that he can cash-in on?

50% more?

Must find the ulterior motive.

 

[dparm]

Take the money and you can laugh all the way to the bank. Remember -- it's just business.

 

[morris]

if my name was on the business and you think the new owner will trash the business then your name is dragged through the mud. i never thought it was a good idea to have my name on a business. my guide lines for a company name. easy to remember and spell. my name not on the co. if you can what the co does is in the name.

 

[cashmoney]

Business is business and not a personality contest. If it is a good deal for you then sell it, and move on down the road.

 

[eljefino]

Sell!

There's a businessman here, Dana Lampron, who sold his business, Lampron energy. He had a few years noncompete clause then he opened a new, even more awesome heating oil dealership down the road, Pit Stop Fuels. He's competing with his own last name!

 

[Shannow]

Sell it...then buy it back for cents in the dollar later.

Have lived in the same town for 20 years now, and there's one business that has been owned by the same couple three times.

They sell to a keen business person who sees the profitability of the business with the small number of staff...who then rides it into the ground over 18-24 months. They buy it cheap, then continue their work ethic, build it back up, then sell it again.

It's not their model to buy and sell the same business, they put in the hard yards, and turn their time into profit...don't buy a wholesale product, when they can buy wholesale produce, and use their spare (while at work) time to make a product.

Buyers see the profit margin, and then decide to buy product to sell...

Another guy has done similar, selling high, with all his IP. They bought the IP, knew better, then lost custom badly...then offered it back at cents/$.

If you are the business, and you are doing something well...which thy think they can do better...you'll get it back again in a couple years.

 

[Vikas]

I don't get it. Here is somebody who registered *today* in this forum to ask this hypothetical question. Is BITOG known over the internet for having very sharp business people?

Why is this guy here??????

 

[Win]

Originally Posted By: Sam2000
Say someone offered you 50% more than your business is worth but you didn't like them.

Would you still sell?

Assumption: you don't expect to increase the value of the business and can replace the income it gives you with the money you receive.


Hypothetically, people don't offer half again what something is worth, so our hypothetical seller is likely mistaken as to the true value.

I dealt with this in real life, not hypothetically, a few weeks ago, in the guise of a potential tenant that receives a lot of funding from something called Soros Capital.

Money from someone you don't like is the sweetest of all, imo, especially if it's a lot of it.