buy out? hmmm

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Originally Posted by Escrap

I am not trying to be mean here, but I don't think your business can be worth 200K. Here is the reason. Lets say by years end you put out 110K, and you make a liberal 50% profit, that is only a profit of 55k. Lets say your expenses are 20% of your profit, which includes labor(you and your workers) and then tools, rent etc(i know you said you get gas free). That is 11,000 off the 55k, so now your net profits are 44K. If I were purchasing a business i am looking at numbers. Growth to me is important, but paying the bills is the most important.

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In the money out that was counting rent, labor and ect.

The first few months I was only taking out of the company what I needed to cover my bills. Now I am drawing a paycheck and we have 2 trucks paid in cash that are running along with trailers.

p.s any company that turns a profit in the first 3 years is great...most take longer than that as they have debt.

At this point my company has no dept and we are turning a profit.

Don't know all of his reasons behind of him wanting to buy me out but I am about to move into a nice warehouse. So when you look at my books in full and see what I am making (net profit) to my labor or rent costs...its very slow. Again pulling on short numbers but my monthly running costs is about $1,800 or so counting rent and labor. Alot of the things we get are all ready processed so we can just weight it...box it..send it out. We do not get that many whole computers in but when we do we process them and get them moved out.

For the fact that we went global...that only had our foot print grow even bigger/faster. There is no one country or state that I cant buy from.

Company is only 10months old.

It is no secret that I am a charter member of the Easy Recycle fan club. I remember when easy first came on the forum....in a whirlwind like many who have come....and gone. I was one of the first to question his validity. I sent pm's to MDG and M688 and olddude.... "Is this kid for real?" I asked. I won't reveal who replied what...suffice it to say that we have watched this process with awe. We only know what easy has chosen to reveal to us, of course, but from what I've seen, I'm just amazed and proud to have him as my little scrappin bro. and I wonder if he'll remember Dumpster Dee a few years from now when the name Easy Recycle is perhaps as familiar as the fruit company that Sgt Dan investested in for Forest.

Wow, that's pretty impressive. When I think back to what I sold my recycling company for back in the 1980s, it sure is a different world. Either way, congrats on having built up a sucessful buisness doing something you love.

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Originally Posted by easyrecycle

In the money out that was counting rent, labor and ect.

The first few months I was only taking out of the company what I needed to cover my bills. Now I am drawing a paycheck and we have 2 trucks paid in cash that are running along with trailers.

p.s any company that turns a profit in the first 3 years is great...most take longer than that as they have debt.

At this point my company has no dept and we are turning a profit.

Don't know all of his reasons behind of him wanting to buy me out but I am about to move into a nice warehouse. So when you look at my books in full and see what I am making (net profit) to my labor or rent costs...its very slow. Again pulling on short numbers but my monthly running costs is about $1,800 or so counting rent and labor. Alot of the things we get are all ready processed so we can just weight it...box it..send it out. We do not get that many whole computers in but when we do we process them and get them moved out.

For the fact that we went global...that only had our foot print grow even bigger/faster. There is no one country or state that I cant buy from.

Company is only 10months old.

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This is a great opportunity for you and your company, Easy.

3-5 years business model and profit is great. I think one of the reasons for the interest is the fact that all over the world right now there is a fragmented and underdeveloped scrap sector. There is a concerted effort for bigger companies to consolidate since 2007 because of rising labor costs, tighter environmental and business regulations, and shifting customer requirements. Also, the bigger companies also believe that there are a lot of small players with insufficient capital and not much in the way of technology or equipment, that can't compete whether that is true or false. Sooner or later, the bigger companies will make it difficult on the smaller businesses in this environment because they have the money to lobby for regulations and other ways.

I think you may have at least a few years to get your business running like you wish, and wont have to worry about selling if you are happy. But then again, its got to be a good feeling that people in your community are taking notice of your accomplishments.

Good Luck!

noone who has even a slight bit of business saavy would offer 50/50..its alway 60-40 or 51-49...they have the money so they should have the majority say on the decisions. that offer alone would make me rething their business acumen..we call 50-50 business owners here dead because they always off one another or plaintiffs and defendants lol

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Originally Posted by jdawg

noone who has even a slight bit of business saavy would offer 50/50..its alway 60-40 or 51-49...they have the money so they should have the majority say on the decisions. that offer alone would make me rething their business acumen..we call 50-50 business owners here dead because they always off one another or plaintiffs and defendants lol

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That...or they wanted me to "jump" into the offer with out much thought so they can take my company right out from under me in the paper work.

it could be a good deal...or bad deal...but a deal I dont think I will take.

My growth as it is...is very good with in 3 years time I should be sitting in a far better place than I am now. I just have to keep the fire under my bottom so I keep getting the deals in and growing as I am now