My wife owns her own company. She’s built it into a fairly autonomous operation. She works about twenty hours a week on-boarding clients and doing all the little things that need to be done as the owner of a company. Her staff is highly skilled, well-paid, and requires no real supervision.
Her top employee has mentioned several times she’d like to purchase the company. I believe she has the financial backing to do so.
The company grosses around $1m a year, but most of that goes to salaries. Besides my wife’s salary, there’s not much else we take home. There’s opportunity to grow, but I won’t factor that in. The industry is in tech and there some risks that a shift would cripple the company.
I know how to value a company. I don’t need help with the most we can ask for. My question is: what amount do we need at a bare minimum to ensure we’re not worse off selling? My wife makes about $105k a year. She’s 42. The stress level is pretty low. She wouldn’t get a new job if she sold (in our area any comparable job would pay $45k or less). I thought if she made $1 million off the sale she should be able to live off the interest and some paring back in personal expenses.
I also work, but I don’t want to factor my income into this. We collectively have $55k in student loans. No other debts, but only $10k in savings and very little in retirement.
Submitted July 10, 2018 at 12:37AM by legomonkeyspaceship https://ift.tt/2m81wSm
