Mr. Sullivan has struggled to sell Arguello Catering inc., the Redford City, Calif., business he started 21 years ago, at a price anywhere near the $850,000 or so he figures he needs to stop working. He reckons that about 70% of his nest egg is tied up in the 25-employee company. Its annual revenue has fallen to roughly $2 million from $3 million before the recession, Mr. Sullivan says. He has tried, without success, to boost the business's value by branching into new markets, expanding hours of operation and adding healthier menu options. He says he got three offers for Arguello this year, but they were far too low....
Judy Lawson, 69, says she would like to sell the small staffing company she started 27 years ago. She figures she needs to sell it for close to $2 million to live comfortably. But her company was hit hard by the job-market slump, and its revenue is down by about 60% from before the recession. Ms. Lawson says she continues to work 12-hour days, meeting with prospective clients sometimes until late at night. She says she can't afford to inexpand (sic) her business, which is down to 13 employees from 35 a few years ago....
Ms. Lawson listed her business for sale last year through a broker, but all of the offers she received were "insulting", she says: as little as $250,000, plus installments that would vary depending on performance. "You don't work for almost 28 years at building a company and give it away", says Ms. Lawson, adding that she won't settle for what she considers a low offer ... she hasn't taken a vacation in years because she can't afford to travel.