Selling a business for $10mill

amother

Thu, Aug 26 2021, 7:20 pm

Say you have a business and someone is offering you $10 million to buy it off.

How should one set up their finances to live comfortably off this money.
How much should be passive investments and how much to start a new business?

amother

Stonewash

Thu, Aug 26 2021, 7:23 pm

If you're selling a business you already know how much to put away for starting a new business.

I would have a financial consultant or an accountant advise me.

amother

Melon

Thu, Aug 26 2021, 7:23 pm

amother [ OP ] wrote:

33% I think, but with that amount of money, you should consult a financial advisor!

amother

Green

Thu, Aug 26 2021, 7:33 pm

I’m jealous… I was feeling lucky that I sold my business for $25,000!
I’m happy for you whoever you are…

amother

Chestnut

Thu, Aug 26 2021, 7:34 pm

amother [ OP ] wrote:

I wish I had this problem LOL

amother

Thu, Aug 26 2021, 8:16 pm

amother [ Natural ] wrote:

How big is your family, where do you live, what are your yearly expenses?

NY, growing family of 9+, as of now we take out approx $500k

amother

Natural

Thu, Aug 26 2021, 8:17 pm

amother [ OP ] wrote:

NY, growing family of 9+, as of now we take out approx $500k

You should obviously speak with a financial advisor.
Do you want to invest in another business?

amother

Thu, Aug 26 2021, 8:17 pm

amother [ Chestnut ] wrote:

I wish I had this problem LOL

So far it’s all in theory, and wondering if it’s worth to sell etc. this will depend on how we can set ourselves up financially.

Numbers are approximate, and there are partners….

amother

Natural

Thu, Aug 26 2021, 8:19 pm

amother [ OP ] wrote:

So far it’s all in theory, and wondering if it’s worth to sell etc. this will depend on how we can set ourselves up financially.

Numbers are approximate, and there are partners….

$10 mil is your share?

What are your take home profits yearly, currently?

amother

Thu, Aug 26 2021, 8:19 pm

amother [ Natural ] wrote:

You should obviously speak with a financial advisor.
Do you want to invest in another business?

Definitely want to work on another business, while also investing passively.
I also think we need to make sure first year of living expenses are accounted for….

amother

Thu, Aug 26 2021, 8:22 pm

amother [ Natural ] wrote:

$10 mil is your share?

What are your take home profits yearly, currently?

Not fully our share, but a big part is, and the investment would be done as partners.

amother

Natural

Thu, Aug 26 2021, 8:35 pm

amother [ OP ] wrote:

Not fully our share, but a big part is, and the investment would be done as partners.

That’s interesting.

Obviously things depend on how much your share is (large part can mean 75% or 99% or even 50% which are all drastically different) as well as what your post tax share is.
Your best bet is to speak with a financial advisor. Is there a reason why you haven’t yet?

It should be with Mazal!

amother

Iris

Fri, Aug 27 2021, 2:31 am

My DH recently sold his business for more than that BH. He spent hours and money well spent meeting with accountants and financial advisors. It's the best money we spent.
We both met with the financial advisor. We gave him a complete picture of our family dynamics, our expenses, and our goals for the future. He came up with a plan which allows DH to dabble in other business ventures while keeping a steady "income" for our family.
This is not something you ask random women on the internet.
Do your research and meet with more than 1 advisor. The initial consultations should be free or inexpensive.
There are lots of factors to consider here and financial advisors literally do this all day.
B'hatzlacha! Its very exciting!

amother

DarkMagenta

Fri, Aug 27 2021, 3:59 am

A close family member just sold his business for a bit more than that B'H. He DOES live in Florida and the tax's still came out to around 3 million. In CA taxes can be up to 50%. Just something to be aware of. But this is something that needs to be in the hands of a skilled financial advisor, not imamother. I know a family who sold their business for around 10 mill and are now destitute. Financial Advisor ASAP.

Raisin

Fri, Aug 27 2021, 4:53 am

well, a bunch of random women have given you some good advice - get professional advice!

Even if you paid no taxes, and it was all yours, at the rate you are living the money would run out in twenty years. And you probably have a lot of weddings etc in the future. Plus, inflation.

There are so many factors, do either of you want to carry on working/running a business, do you own your house, do you have a retirement fund, are you saving money each year out of the $500000...

Of course, this is enough money to retire on, (or do like Naftai Bennet and go into politics) but possibly not at the standard of living you might want or are used to.