Transcript for:
Understanding Partial Business Sales

so I rolled 40% of what I owned so if I owned 100 shares on the day before it closed they bought 60 of them and then I rolled 40 so I've rolled 40% so basically certon bought 60% of the company and your sellers will know this because this sort of comes back when they say oh we want you to roll 10% we want you to roll 15% we want you to roll 25% same thing here I rolled 40% like a dummy I want to get to why you think that was a dummy but I just want to do the math and again if I'm getting into territory you're uncomfortable with just say I can't talk about that but if I'm doing the math right they valued the company at 29 million pre-money and 44 post right you own half of it so they thought your holding was worth around 15 million bucks give or take re should I have sold the whole thing for $29 million yes then I would have put 15 million into the bank based on that math got it but but they said hey we're not going to give you a check for $ 15 million cuz we want you to stick around of the vision blah blah blah so here's a check for 60% of 15 and we want you to roll 40% is that basically the math I should think about okay so you're in you got some some some cash in your jeans but they've ask you to stick around and make the 4 took cash off I took cash out yeah but to me it wasn't about the cash out it was about the roll because you thought that was gonna be shot okay so yeah but that's the thing that's that's the thing and this is the thing I I gave up control and I should have just sold the whole thing was that on the was that on the table did did did alerton like offer 100% no in it wasn't really common in our industry that founder Le Concepts that were that nent you know were fully cashing out although there was one or two snooze am eery being one of them although and I my therapist reminds me that like you said like it wasn't really I can't I can't think to myself about taking 15 million out like and being done like because that really wasn't an option but to specifically answer your question it probably wouldn't have been possible because I was so inextricably linked to the comp and I see this now when I'm buying businesses I was looking at a Restoration company this dude wanted the full he wanted to cash out I'm like but bro you are the business and that's probably true a lot of your listeners they are the business so so from a security of the buyer perspective they need to have that guy roll or gal roll a little bit but in any event so I I gave up control sold 60% but yes I wish that I had just sold more of a percentage because then I would have had more cash out