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Author
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Topic: Big choice to make...
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N8
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Member # 6048
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posted
 
 
Just out of curiosity wondering what you guys would do.
Well I currently run a ad agency, dev studio. We specialize in web, multimedia, 3d and CG and graphic design. We basically fly below radar and snatch bids from larger agencies. Our low overhead and unique setup allows a very agile development environment. Sometimes we are on site, sometimes we are remote and sometimes we are behind the scenes. Anyway, one of our larger clients has offered to absorb us. Basically buying us, and giving me a high ranking position in the business unit. I consider it a honor and I want to jump on it.
But....
A. I love working for myself
B. I want to see my business mature and reach the heights I had planned
C. want to have something to give my kids (business wise)
Plus....
A. I would lose some of my employees.
B. Lose control of the overall group.
On the good side
A. I would be guaranteed a job
B. Some of my employees will be guaranteed a job as well
C. I good chunk of cash that will help launch my other business (plus solidify my kids continuing education plans).
Ultimately this is something my wife and I will discuss and do what is best for the family. But I am big on loyalty and respect. And I feel like I am going against both if I take this offer. Plus I feel like I will be working under a umbrella again. But on the flip side I will be back a regular 8hr day instead of 14-16 hour days sometimes.
What would ya'll do? Take the money and run and say screw it? Or stick it out and mature what you have started so you can say you reached a goal?
Posts: 11638 | Registered: Sep 2005
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Nastysvt
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Member # 6431
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thats a toughy looking at both aspects, but it seems that your business is doing well enough where another company wants to step in and take over. I'm not sure how long you've been in the business now but I would wait it out, and see where it goes. On the other hand it would be nice get have that 40 hour work week. Ultimately the decision is going to come down to you and your wife. I wish u the best of luck on whatever you choose! ![[patriot]](graemlins/patriot.gif)
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Posts: 2575 | From: Valley to the Bay | Registered: Jan 2006
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DIRTY SALLY
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Member # 7845
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have ever thought about seeling your company before? and dont u have 2 companys running?
i would wait a lil while till the ecomony starts turning around where your company can grow then sell have 1/2 of it so your still part owner just in case your biz becomes a major money maker.
on real talk have u started any iras? or reterment plans. have you invisted in any stocks other than your company?
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Savage Habits
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Posts: 9145 | Registered: Aug 2007
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N8
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Member # 6048
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posted
quote:
Originally posted by CALIFORNIAGT:
have ever thought about seeling your company before? and dont u have 2 companys running?
i would wait a lil while till the ecomony starts turning around where your company can grow then sell have 1/2 of it so your still part owner just in case your biz becomes a major money maker.
on real talk have u started any iras? or reterment plans. have you invisted in any stocks other than your company?
2 companys...well kinda. We spun off a sister clothing line to compensate for sagging revenue (which actually hasnt fully launched yet). I never thought of selling the co. before. I always said I want one of my kids to take it over. Pretty much all my disposable revenue goes into one of 3 places at this point. My kids college funds (alot considering I have 5), My home/savings or the business. I do not really like investing in others. I was raised investing in one's self is the greatest investment (thats the southern in me). This whole thing is bringing up thought processes I never really thought of before.
Which is making it tough. I am too old to start taking risks is what my mind says. Heart says *in a Chris Rock voice* take the money fool.
Posts: 11638 | Registered: Sep 2005
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losbadgts
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Member # 4394
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thats a tough position to be in cause i understand what u are feeling. All i could say is be on the selfish side and look at what's best for your family, cause when the chips are down the only people that are going to be there is your family.
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Why pretent someone u are not, everyone else could see it.
Posts: 3625 | From: redwood city | Registered: Apr 2004
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N8
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Member # 6048
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posted
quote:
Originally posted by losbadgts:
thats a tough position to be in cause i understand what u are feeling. All i could say is be on the selfish side and look at what's best for your family, cause when the chips are down the only people that are going to be there is your family.
Man I do not think I can pull my self to do it. Some of the people I would lose made some pretty big sacrifices and decided to stay with me instead of going to some company in the bay. I do not pay as well as those guys obviously. And one dude just had a kid. I cannot look him in the face and tell him he wont have a job in X days. Maybe I am not cut out for business. I just cannot see myself being that cut throat.... Damn this tugs at my very moral fibers. wow. Sorry was thinking out loud in this one...lol
[ August 04, 2009, 04:52 PM: Message edited by: N8 ]
Posts: 11638 | Registered: Sep 2005
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KINGROY
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Member # 7736
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Go for what you believe in, because at the end the day. It's you and your family that you'll have to face.
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2003 Cobra Vert
2005 Prius
Posts: 1642 | From: Vallejo, CA | Registered: Jun 2007
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migs66/92
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Member # 4811
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is there any way you can make a deal with the buying company in order to save peoples jobs???maybe you can... you never know
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Ill keep my guns and my money, you can have the change
Posts: 343 | From: lodi ,cal | Registered: Aug 2004
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N8
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Member # 6048
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posted
quote:
Originally posted by kingroy:
Go for what you believe in, because at the end the day. It's you and your family that you'll have to face.
Yea that is part of the problem. Telling my kids I put a price on my dream. But yea I dig what you are saying.
Posts: 11638 | Registered: Sep 2005
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losbadgts
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Member # 4394
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posted
quote:
Originally posted by N8:
quote:
Originally posted by losbadgts:
thats a tough position to be in cause i understand what u are feeling. All i could say is be on the selfish side and look at what's best for your family, cause when the chips are down the only people that are going to be there is your family.
Man I do not think I can pull my self to do it. Some of the people I would lose made some pretty big sacrifices and decided to stay with me instead of going to some company in the bay. I do not pay as well as those guys obviously. And one dude just had a kid. I cannot look him in the face and tell him he wont have a job in X days. Maybe I am not cut out for business. I just cannot see myself being that cut throat.... Damn this tugs at my very moral fibers. wow. Sorry was thinking out loud in this one...lol
having a business is hard but there is always decisions that needs to be make good or bad, i have notice now a days that people are very selfish and only care about themselves and family, so i have turn a bit selfish myself too i'm not so proud of it but at the end of the day u are just looking out for the well being of your family.
and like u said that extra money could help u start the other business and provide jobs as well.
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Why pretent someone u are not, everyone else could see it.
Posts: 3625 | From: redwood city | Registered: Apr 2004
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90gtvert
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Member # 8697
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Hey N8,
You gotta go with what you want on this one. As it stands right now I dont know if I can ever go back to working at a coporate job "working for someone". As a co-owner of a business that has grown from 3 people to 51, I just dont see myself EVER working for someone else again. I know that my hours are crazy (15 hour days 6 - 7 days a week), but in the end I have complete control of every aspect of what I do, and cant give that up. BUT, the one thing, is if my company was to be aquired, I would work the pre-requesite 6months to 1 year, then cash out. But at that point I would be set for life. I am big on loyalty in my company as well, but the one thing i cannot ever look past is the ability to retire before 30. You just gotta do what you feel is right AND what is in the best interest of your family.
Mike
[ August 04, 2009, 05:28 PM: Message edited by: 90gtvert ]
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90 GT Vert
93 GT
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Posts: 1889 | From: Bay Area | Registered: Oct 2008
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N8
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Member # 6048
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posted
quote:
Originally posted by 90gtvert:
Hey N8,
You gotta go with what you want on this one. As it stands right now I dont know if I can ever go back to working at a coporate job "working for someone". As a co-owner of a business that has grown from 3 people to 51, I just dont see myself EVER working for someone else again. I know that my hours are crazy (15 hour days 6 - 7 days a week), but in the end I have complete control of every aspect of what I do, and cant give that up. BUT, the one thing, is if my company was to be aquired, I would work the pre-requesite 6months to 1 year, then cash out. But at that point I would be set for life. I am big on loyalty in my company as well, but the one thing i cannot ever look past is the ability to retire before 30. You just gotta do what you feel is right AND what is in the best interest of your family.
Mike
My mind is going 100 diff ways on this. But yea, I am not even sure I can fit in with a corporate role anymore. I am so used to being the shot caller. As you know as a owner you have to be the best employee. In a corporate setting that can be viewed as a brown noser. I am gonna meet with a attorney next week to discuss this.
Its coming down to follow my brain or my heart.
Posts: 11638 | Registered: Sep 2005
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90gtvert
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Member # 8697
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posted
quote:
Originally posted by N8:
quote:
Originally posted by 90gtvert:
Hey N8,
You gotta go with what you want on this one. As it stands right now I dont know if I can ever go back to working at a coporate job "working for someone". As a co-owner of a business that has grown from 3 people to 51, I just dont see myself EVER working for someone else again. I know that my hours are crazy (15 hour days 6 - 7 days a week), but in the end I have complete control of every aspect of what I do, and cant give that up. BUT, the one thing, is if my company was to be aquired, I would work the pre-requesite 6months to 1 year, then cash out. But at that point I would be set for life. I am big on loyalty in my company as well, but the one thing i cannot ever look past is the ability to retire before 30. You just gotta do what you feel is right AND what is in the best interest of your family.
Mike
My mind is going 100 diff ways on this. But yea, I am not even sure I can fit in with a corporate role anymore. I am so used to being the shot caller. As you know as a owner you have to be the best employee. In a corporate setting that can be viewed as a brown noser. I am gonna meet with a attorney next week to discuss this.
Its coming down to follow my brain or my heart.
And deciding how you will be truly happy. You dont want to sell it, then go to work for someone else, and be miserable for the rest of your life.
I would gladly take less money to be happy, then be set with a cushy job where I was unhappy.
Mike
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90 GT Vert
93 GT
http://www.110octanephotography.com
Posts: 1889 | From: Bay Area | Registered: Oct 2008
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SHOalex
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Member # 7720
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The way it seems is you have to do what's best for you and your family in the long run obviously, but which choice is the best isn't so obvious if it's a strong company then it might be worth it and especially for benefits I've seen people take a pretty hefty pay cut from one job to another simply because they had better benefits another up side might be like you said 40 hour work weeks more time to spend with the kids and possibly less stress as well
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BAM! POW! Right in the kisser.
Posts: 1448 | From: Oakland | Registered: Jun 2007
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SPIDER_STANG
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Member # 8658
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I'm sure you & your family will figure it out but just be happy with what ever choice you decide to go with!!!
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02 GT Conv Sold
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Posts: 1722 | From: Bay Area | Registered: Sep 2008
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liftedF150
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Member # 868
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Here is my take on it n8.
You start a business to eventualy sell and make money to retire ( hopefully) I think you really need to put emotion aside and make the smart business decision. You cant worry about keeping a company for your kids to run because what if that isnt what they want to do in life, and you shouldnt push them into something they dont want to do.... If you sell the business you a. will have money to help provide for the family and your kids educations and who knows eventually start up another business if this one doesnt work out. b. you will have more time with your kids because you wont be working 15-16 hour days and on the weekends and you can leave work at work. I have met some very smart people in my line of work and most of them are where they are because they didnt let emotion get in the way of business wich is why they are rich and sucessfull. my point is that I think you should sell if you think you are getting a fair offer and trade for your company and if it doesnt work out in the end you still have the money and you can always start a new venture....
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GO SHARKS!
Posts: 3259 | From: Discovery Bay | Registered: Feb 2002
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Chris C.
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Member # 1949
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posted
1. business is business plain and simple.
I think the best way to look at it, would be "whats in it for me?" Because at the end of the day thats what people do...
2. If you truely enjoy what you do, then you really never "work". The work environment definitely plays a role in if work is fun, or if work is work...
3. There is nothing like owning your own business, u are the boss no one else, dont ahve to deal with having things cleared/approved by 3 people who have no idea what u have to deal with on a daily basis.
4. What if the company that wants to acquire yours, ends up thinking X year/s from now they dont need you or they want to go in another direction of somesort? Is your position stable if u do get acquired?
5. take a worst case senario if they did buy out your company and see if thats something u could live with...
Good luck!
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Posts: 636 | From: San Jose, Ca | Registered: Oct 2002
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Daniel50
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Member # 5629
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what a completely useless post!!!! there is no you tube link, no questions where to find prostitutes, no i like turtle references, and no look i found (insert caford member name) pic!!!!
lol. but if i were you i would go with the guaranteed job. its security for you and your family
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Posts: 1017 | From: Discovery Bay, CA | Registered: Apr 2005
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Rigo5.0
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Member # 5247
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This is tough...
Be honest with yourself and asses where your business is at. Is it still growing and do you see it growing for another 5 or 10 years? Or, has it struggled in growth and profit more recently?
Take into consideration your competitors as well... see how they're doing.
I don't know anything about your line of business but I would take a look at your business and market from outside the box. That way, your pride and heart don't cloud your judgement. Take a look at the most recent trends in your market.
Selling off a successful business can lead to a more prosperous future.. Mark Cuban is a famous example of this.
Good luck!
[ August 05, 2009, 03:16 AM: Message edited by: Rigo5.0 ]
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91 5.0 [331|T56]
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Posts: 1454 | From: Kansas City | Registered: Jan 2005
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SAMACH1
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Member # 7042
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When thinking about the future, think about if all your kids are going to be cut out for school. Schools not for everyone, so it would be nice for your children to have a business of there own to fall back on..I dont know though because it is money and less work, what is more secure?
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Posts: 1668 | From: EAST BAY | Registered: Sep 2006
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hattrick90
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Member # 8407
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from what i read a lot of people are advising you to protect your family...honestly how i see it is that you have more than just your family in this decision how much would it suck to be that guy that turned down a job so he can stay with you only so that you can sell the business and he loses his job despite the loyalty he showed to you...i definitely agree that your family comes first but if you can be happy with what you have and keep a roof over some other peoples heads at the same time then whats wrong with that...now if your struggling to make bills and barely have enough money to feed your family then hell yea you have to make sure your family is fed...but i honestly believe that most people have started passing up chances to help others. so do whatever it is your family really needs
good luck and i hope it turns out well...let us know what you decide and how it all works out
Posts: 70 | Registered: May 2008
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gq916
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Member # 8540
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I would sell it if you are getting the amount of money you think your company is worth and if they guarantee you a job. 14-16 hours a day really suck. A lot of your stress will go away if you for work someone else and only 8 hrs a day.
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Posts: 306 | From: sacramento | Registered: Jul 2008
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Wolfie351
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Member # 651
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posted
There is no such thing as a guaranteed job. They can give you a contract, but that's for money, not a job. They can buy out your contract at any time or fire you for gross misconduct which will be written into the contract. You will also be required to sign a non-compete clause, probably for 3-5 years. So, if you do get let go, you can't start a business that competes in any way with them for that length of time.
Business attorneys have all sorts of formulas to determine a company's worth. But, they do not factor emotions into it. If you decide to sell, have a number in your head of what it is worth to YOU, not some calculated number.
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1985 Mustang GT: 351W, Griggs, Baer, etc etc
Posts: 1214 | From: South Bay | Registered: Dec 2001
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N8
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Member # 6048
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posted
quote:
Originally posted by Wolfie351:
There is no such thing as a guaranteed job. They can give you a contract, but that's for money, not a job. They can buy out your contract at any time or fire you for gross misconduct which will be written into the contract. You will also be required to sign a non-compete clause, probably for 3-5 years. So, if you do get let go, you can't start a business that competes in any way with them for that length of time.
Business attorneys have all sorts of formulas to determine a company's worth. But, they do not factor emotions into it. If you decide to sell, have a number in your head of what it is worth to YOU, not some calculated number.
Yea, I spoke to a attorney yesterday and he gave me the run down of what to expect. And one glaring one was that I cannot start another business in that sector for a allotted time frame. I forfeit the trademark I use for the company. And you are right, I would guaranteed a salary not a job. Also they could buy out that salary at a reduced cost or something like that. I will view the proposal to see what is up, because at this point it was implied/conversation proposal. I am planning a meeting with my employees to discuss this option after I get the proposal and meet with an attorney.
Posts: 11638 | Registered: Sep 2005
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Wolfie351
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Member # 651
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Unless you REALLY trust your employees, I would keep it quiet for now. Their offer may be ridiculously low, so no reason to get anyone nervous over nothing.
Also, when negotiating, keep in mind the current economy. Everything has taken a hit and is devalued right now, so if you waited a couple years, your business will be worth more, obviously. Negotiate as if it were 2011, not 2009...because, you are not desperate to sell
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1985 Mustang GT: 351W, Griggs, Baer, etc etc
Posts: 1214 | From: South Bay | Registered: Dec 2001
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