Originally Posted by AnIntentionalRoad
Business #3 is managed by the founder and I only own about 2% of it. I am not involved other than receiving my dividends. It is a software business that has 40-50% net profit margins and has been growing at about 20% a year the past 2 years. Unfortunately the majority owner is in talks to sell it, I just found out this week, to a large silicone valley tech company. We'll see if it pans out as the close rate on these types of acquisitions tends to be low. If it does close, my shares should be valued in the $1.25MM to $2.5MM range, but I use very conservative valuation models for tracking my portfolio for all the private businesses I have some stake in (a total of about 6).
The other two businesses I mentioned are wholly owned and operated by me part-time.
A hah! I thought that business had to be waaaaaay undervalued. So hopefully you'll be very well compensated for your rich yielding shares, and it will end up increasing your retirement portfolio substantially, and you will STILL have a very conservative withdrawal rate even though your draw is $90K larger. Congrats!