Howdy people! Long time no see!
Ok I have something to ask you guys.
Let's just say you've spent a painstaking 8months to research and built a new idea on an ultimate website and you know the market potential but you are still building up your customer based and etc. These 8 months of working are a total hell to you, your mum or wife nags at you for not bringing in income and a lot of pressure builds up from elsewhere. Finally you launch it!
What if during this time some company wants to acquire your business for $31.5 million (just a rough figure)? Would you sell your business and become an instant millionaire or do you want to continue building your baby?
Knowing that once you sell it, apart from losing your line of revenue recurring business, the downside of this is that, your entire life goal is gone. You will have to research another new idea to work on it again. With the money you got from the acquisition, you might suffer from procrastination etc...
If you take the money, how long can 31.5 million last you depends on how you spend it, bearing in the mind this is a one off payment and you won't be generating more revenue unless you do some investment or any other kind of business.
There are two ways to decide: one is a personal choice and the other a wiser business decision. For an individual who needs the money and cannot afford to take risks in the future it is better to exit and go in for more safer investments like real estate.
However if your idea is very good and you can take some risk then you should try getting new investors. You will still lose some percentage of the share in the company but if your idea can be improved then you might get more in the future than the current offer.
...and the other a wiser business decision. For an individual who needs the money and cannot afford to take risks in the future it is better to exit and go in for more safer investments like real estate.
Saying Real Estate is a safer, wiser business decision is ridiculous.
Those of us that were around for the bubble, the bust, and the aftermath. It was reminescent of the .com bubble of the 90's, with a much much larger impact.
I am a General Contractor, and had hedged some of my profits in flipping houses we bought. Lost quite a bit at the end, and a fairly well known flipper of high end homes in Chicago actually committed suicide under the crash and result of holding multiple mortgages much longer than what had been planned for. And this isn't off your rocker planning.
No business venture comes without risk. And what ventures are "safe/safer" is completely in the eyes of the beholder.
Someone obviously has faith in the idea, and if they have 31.5million to pay for something, they probably have the means and funding for getting that idea off the ground; which might be something you lack.
However, you could make a counter offer, something that means you still benefit from the idea if it takes off, like you keep shares in the idea or something, and even see if they'd agree to let you manage the site in some way.
If they think you're idea is that good, might mean they believe in you enough to let you continue working on the site, but still give you a nice lump some for you to play with.
Or you could just retire, 31.5million is more than enough. 31.5million for 8 months work? Not too shabby :p
I would definately sell. Though if its a serious business (should bo for $31.5 million) hire an attorney and try to work out a deal where you are hired on by the buyer as a consultant and get a salary for a few years.