March 27, 2019

Would you accept such an offer?

Assume you own a 15 years old business with 10 million Euros annual turnover. There are a couple of companies in your size that you would call competitors. Your market goes through a consolidation period. One of your competitors was bought recently by an international company at 1.4 times its turnover.

A week ago you’ve received an offer for 100% of your business for 10 million Euros, on “cash free/debt free” base. You’d not pay any taxes on that amount but won’t be able to work in your sector for 5 years, if you sell.

The interested company already has your financials for the last 3 years. They asked for your answer by tomorrow. You are not sure but they might have another option to go to if you don’t accept the offer. There is no chance of negotiation.

With today’s conditions taken as constant you forecast that you could make a total of 9 million Euros profit after tax in the next 3 years.

Would you accept the offer? Yes or No?

Please write me your decision and why.

Song of the blog: George Strait – Check Yes Or No

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