After busting my butt for several years now to grow my businesses and working through buying out partners, etc. I've been approached by a large firm that I do business with expressing an interest in buying 75% of the shares in my businesses. It's VERY tempting to keep 25% of the shares, become managing director on a generous salary and reduce my workload from 100+ hours a week to 50.
What I'm looking for is a guide to deciding what it's worth in actuality. From an emotional perspective, it's priceless, but the cold hard reality is that it's probably not worth as much I'd wish for
My services business has an estimated gross revenue of +$400K this year (more than halfway there at the end of second quarter) on expenses of about $200K and my disaster recovery business will see about $75K on $30K in expenses. The DR business is all 3+ year contracts of recurring revenue and will see steady growth of 100% per year over the next 5 years based on the last 2 years experience.
In addition to this, the businesses have $200K in physical assets besides recurring contracts, unfortunately most of that is computer equipment/servers/office furniture/etc which isn't really worth squat except on paper for the taxman.
I've worked hard at marketing/branding/goodwill and both businesses are recognized in my industry segment by decision makers and the reputation of the services business is great and the DR business is getting there. My own reputation in the industry is great and has led to a lot of work from banks, pharmas and IBM. Ads for the businesses run in industry magazines and on websites regularly and continue to have a good effect on revenue.
Overall, both businesses are very healthy with good cash flow and reserves for capital investments and rainy months
What are your opinions? Suggestions? Derogatory remarks?