Originally Posted by hilltide
... One thing to mention is I did finalize a buyout of the family business with my father and his partner. It is mainly done with Net Profit of the company over a period of time. I did not personal guarantee or take out any personal loans to accomplish this. I have been running the company for some time now with one of the other principles daughters.
It took us two years two get everything right but we finally structured it where everyone was happy including their beneficiaries. When you are dealing with non-related 2nd wives it is not an easy road at times.
... Still a long way to go but headed in the right direction!
A "long way to go" viewed through the windshield is one thing. In the rear view mirror it will not look so long.
In particular, you should be thinking now about the endgame for the business. Sell? To what kind of buyer? To the other principal's daughter? You're the majority shareholder I hope, or it can get messy.
I know a guy who has a great wine shop. About 3K people have opted-in to his weekly emails. Average ticket size is probably $200-300, mostly selling by the case. Knows many customers by name, tastes, and price range when they walk in. Fantastic place as a customer, but he has nothing to sell. He is the whole business and if he leaves the business would just wither up and die. So he too needs an exit plan, probably bringing a buyer on board and working with him/her for a year or two, then getting paid off over time.
I looked at buying business one time but the deal bubbled after I discovered that the VP Sales did not have a non-compete agreement with the owner and would not sign one for me. If he walked, he would take the customer list and all those relationships with him.
So ... lots of words to make the point. Plan now; develop the business and select employees according to the direction it needs to go in order to make your exit plan successful.