buy out? hmmm

**easyrecycle** · 10-12-2011, 07:55 AM

There are some very good points here. Reason why I am not going to sell is for the fact that people trust me. They want to buy me out and close down my company and go work for THERE company with 50% rights.

This company started first of the year with me doing this long before but not under a company name..I was doing it for beer money but...it was at a point where it was more than just beer/food money...it started to pay ALL my bills with money left over, so I turned it into a company.

I had looked at this offer by my self and with other people of trust, and we are not going to reject or take the offer.

Simple numbers here but not 100% right (just rounding close to the real numbers)

1 quarter money out 7,500 + 5,500
2 quarter money out 27,500 + 8,000
3 quarter money out 18,000 + 6,000

I wont post money in...just money out. Not bad for the first year and my company is not in running into a hole.

**Pcbmine** · 10-12-2011, 08:14 AM

So you have roughly put out 80K this year.

**Pcbmine** · 10-12-2011, 08:51 AM

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.

**easyrecycle** · 10-12-2011, 09:25 AM

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.

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.

**ChinaRedneck** · 10-12-2011, 12:51 PM

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.

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!