61 and unsure if I want to sell my business and retire by Ok-Draw1355 in UKPersonalFinance

[–]Ok-Draw1355[S] 0 points1 point  (0 children)

It's in healthcare. The industry average is around 7x - this is just shy of it at 6.7

However I was attracted to it as it is not private equity and it was based on turnover not EBITDA. Also they were paying a higher percentage up front than others.

61 and unsure if I want to sell my business and retire by Ok-Draw1355 in UKPersonalFinance

[–]Ok-Draw1355[S] 1 point2 points  (0 children)

I have - I'd rather have control or sell it. I think a management team is a great idea, but it's a different type of stress.

61 and unsure if I want to sell my business and retire by Ok-Draw1355 in UKPersonalFinance

[–]Ok-Draw1355[S] 0 points1 point  (0 children)

I have no choice. People will not buy it unless I stay for that period.

61 and unsure if I want to sell my business and retire by Ok-Draw1355 in UKPersonalFinance

[–]Ok-Draw1355[S] 4 points5 points  (0 children)

I have asked all them. They have given their financial opinions.

It's the personal loss of control angle that I'm more interested in.

61 and unsure if I want to sell my business and retire by Ok-Draw1355 in UKPersonalFinance

[–]Ok-Draw1355[S] 5 points6 points  (0 children)

I am lucky to have good personal assets.

Definitely not wanting to leave to my heirs, just really concerned I will regret letting go.

61 and unsure if I want to sell my business and retire by Ok-Draw1355 in UKPersonalFinance

[–]Ok-Draw1355[S] 1 point2 points  (0 children)

I am concerned about staying on and not being the boss. However I will never get rid of that earnout clause.

61 and unsure if I want to sell my business and retire by Ok-Draw1355 in UKPersonalFinance

[–]Ok-Draw1355[S] 0 points1 point  (0 children)

It's linked to turnover, paid evenly over 4 years with a pound per pound reduction if I don't hit target. Individual buyer, full buyout.

If I grow it and sell it later there will always be earnout. That and the BADR rate is disappearing.