3 ms·

Why would you be happy to sell your company for $1M when you've already had revenues of $2M? Have sales declined so much since?

nl 11y ago
Revenue on physical products is dramatically different to profit. Given that growth rate and the need to invest in new facilities and production facilities (ie, robots) it wouldn't surprise me to find the OP is running at break-even.
- gregpilling 11y ago
  We are mostly cash flow limited, and credit limited. For example I am trying to buy 4kw laser cutter right now and I am having trouble getting financed. The business is 11 years old, but because of things it is a 3 year old LLC that looks like it doesn't have enough business history.
scintill76 11y ago
I think he meant he hopes to eventually get some money out of them for stealing his design, and that just one-twelfth of their recent sale price would be satisfactory.
- j2bax 11y ago
  I'm pretty sure he was comparing the value of their company to his not saying he was hoping for them to randomly cut him a check for 1/12th their selling price.
  - reagency 11y ago
    He was saying that he didn't even have a grand aspirations as what his product was worth, a smaller payday would have made him happy, if fates had just been less cruel.
    - gregpilling 11y ago
      Actually I took a tiny payday in 08 because of health problems - $200K over 10 years for a third of a $2M per year business with 66% gross margins. Nobody was buying or lending any money at that time and the stress was killing me. I was 38 with children and developed arrhythmia. My wife and I decided it was better to risk being broke to being dead. Fates have been plenty cruel, but things are looking better these days.
- gregpilling 11y ago
  I don't have the money to sue, and I don't think it would be worth it anyhow. It would be great though if the group that bought him decided that they wanted to roll up the other players in the industry. If I get the chance I am selling. We are probably number 3 for unit volume in the industry and the only independent one. It could happen :)
gregpilling 11y ago
Yes. 2008 was very hard on my industry and everything went to hell. I started the year with 23 employees and ended with 10. I developed a chronic health problem and sold out to my partners and the sales manager, and carried the loan (nobody was lending for anything at the end of 2008). I had to repossess the business in 2011 when they stopped paying me for 6 months. It has been a long, long, slow climb back to the business being healthy. Real revenue in '12 was about $800,000 and we have climbed about 20% per year since, but we are constantly cash limited. I would be happy to sell and do something else, and that much money would fund the 'something elses' I have in mind. The business is not fun anymore, and I am trying to pivot it a new direction but the Queen Mary takes time to turn around.

nl 11y ago

Revenue on physical products is dramatically different to profit. Given that growth rate and the need to invest in new facilities and production facilities (ie, robots) it wouldn't surprise me to find the OP is running at break-even.

gregpilling 11y ago
We are mostly cash flow limited, and credit limited. For example I am trying to buy 4kw laser cutter right now and I am having trouble getting financed. The business is 11 years old, but because of things it is a 3 year old LLC that looks like it doesn't have enough business history.

scintill76 11y ago

I think he meant he hopes to eventually get some money out of them for stealing his design, and that just one-twelfth of their recent sale price would be satisfactory.

j2bax 11y ago
I'm pretty sure he was comparing the value of their company to his not saying he was hoping for them to randomly cut him a check for 1/12th their selling price.
- reagency 11y ago
  He was saying that he didn't even have a grand aspirations as what his product was worth, a smaller payday would have made him happy, if fates had just been less cruel.
  - gregpilling 11y ago
    Actually I took a tiny payday in 08 because of health problems - $200K over 10 years for a third of a $2M per year business with 66% gross margins. Nobody was buying or lending any money at that time and the stress was killing me. I was 38 with children and developed arrhythmia. My wife and I decided it was better to risk being broke to being dead. Fates have been plenty cruel, but things are looking better these days.
gregpilling 11y ago
I don't have the money to sue, and I don't think it would be worth it anyhow. It would be great though if the group that bought him decided that they wanted to roll up the other players in the industry. If I get the chance I am selling. We are probably number 3 for unit volume in the industry and the only independent one. It could happen :)

gregpilling 11y ago

Yes. 2008 was very hard on my industry and everything went to hell. I started the year with 23 employees and ended with 10. I developed a chronic health problem and sold out to my partners and the sales manager, and carried the loan (nobody was lending for anything at the end of 2008). I had to repossess the business in 2011 when they stopped paying me for 6 months. It has been a long, long, slow climb back to the business being healthy. Real revenue in '12 was about $800,000 and we have climbed about 20% per year since, but we are constantly cash limited. I would be happy to sell and do something else, and that much money would fund the 'something elses' I have in mind. The business is not fun anymore, and I am trying to pivot it a new direction but the Queen Mary takes time to turn around.