Welcome to Car Talk. This is not talking about cars. This is talking inside of a car. Today’s talk is about exiting a business, and no, I don’t mean walking out to go get a Polar Pop at Circle K. What I mean is selling a business. Now, I’ve never sold a business, but what I have done is built a little business for myself which I have contemplated selling, and I’ve done a Car Talk in the past about how if you build for selling versus build for keeping, you build in different ways in a business because you invest more long-term when you are planning long-term and you invest less long-term when you’re not, ’cause you wanna inflate your balance sheet and have your numbers look really good. I get it. And I used to say I would never sell, I would never sell. I would need a whole, whole bunch of money, many, many millions to consider ever selling, but it would be hard to pass up.
I’m 34 years old, turn 35 in March. It would be hard to pass up an offer of $1.5 million at this stage of my life with what we’ve already managed to save and invest so far. That would be enough to maintain a lifestyle the rest of our lives. Maybe not a glamorous lifestyle, but the pressure off of ever actually having to do anything. Now, of course I would not be able to just sit around. I would build something new and do it all over again ’cause that’s how I’m wired and what I want to do, and I go back and forth because part of me thinks, and Karen made a very astute observation, which I thought of myself. She goes, “It’s too soon because you just one more year “get another year of solid, solid growth, “it’s gonna really increase the value “for exiting the business,” and she probably is right.
I think she’s right, but at the same time, it’s just gonna be hard to pass up certain sums of monies. It’s one thing to say I wouldn’t sell for a million and something else to have an offer and to actively decline it. So I don’t know what’s gonna happen, but I have a business broker from a local business, buying, selling broker group coming over on Monday to take a look at the operations, the balance sheet, income, profit loss, the whole deal, to get a feel for what this person thinks the business could probably sell for and that will have an impact probably on what we decide to do, so it’s a little weird, because I don’t think I would ever, I don’t really want to sell. At the same time, it would be hard to pass up an opportunity if that presented itself like that, so I don’t know. Time will have to tell. Every situation’s different.
People have been looking around, people buy and sell, different reasons, different amounts all the time based on life and necessities ’cause everybody’s life is different as their own dynamic of what they need and don’t need at that time, so I don’t know what I’m gonna do, but it’s been on my mind a lot and I’ve been thinking about it a lot the last few days of what amount would I be able to say yes to, what amount would I be able to say no to, and of course that’s just what they think it’s worth, which is a whole different ballgame from what someone is actually willing to offer to buy it. Again, different like real estate. You say it’s worth this much, but until someone pays for it, it’s not worth anything as far as an acquisition. So I don’t know what’s gonna happen, but who knows, in the next few months, you might find out that I sold off the business and just living a low key easy life at the new house. Of course I know, I know myself, and everyone in my inner circle knows me. I’ll just find something new to start and develop. It’s kind of what I do. That’s what I have fun doing, but time will tell. So that is today’s Car Talk about exiting a business in terms of selling a business. Car Talk, Tyler Douthitt.