Large commercial business wants to buy my residential business and come build out a residential Division

So I am in hvac and been in residential side for 20 years. I've struggled scratched clawed my way to where I am and I have a system in place that gives me flexibility in my business and I have 1 employee and a sub contractor

Our small business does 250k a year and it operates close to 50% gpm

I need to double my business to make myself a cool 150k-200k currently enjoy the benefits of owning the business 100 % and make approx 60k when you factor business perks like company vehicle gas Insurance cell phone and home internet paid for

It's been an 8 year journey and love control flexibility however.

We are meeting to discuss buying me out and forming a residential division

This is a 40 year old business and I estimate they do 20-25 million in commercial construction projects

He wants to buy me out and give me % of the division and let me run the division and continue doing what I am already doing. He knows nothin about the residential side and he's too busy on commercial. He has the overhead covered with shop space field employee pool to access from

His options are

Stop doing residential all together and tell customers sorry

Sell his customer list to me and let me work it for a royalty fee and gives me about 35 % gpm. I grow my business and hire and fire and continue ahead and continue with all the risk as I have

I come on board and run sales and service in the residential side I take on more responsibilities and manage myself and the department and make all residential decision.

A lot of outside sales work and I've set my business up where I can do everything from a laptop or iPhone so i don't want to be a office lackey 8-6 I am always tuned in to my business 24/7 but there's days when I relax mid day spend time with my wife on her days off. I don't want to give up that ability. I take care of business efficiently but again I don't want to feel like i need to keep a chair warm in the office I follow preto principle of 80-20

Some concerns I see is that of the times I talk with him he's really busy working into 9 at night. He said he's always working

Money is important to me but I am not interested in making 100-150 and having to do 80 -100 hours a week

I am getting a little bored in my small business and growing will take another 2-5 years to really get their

Anyone want to give me there 2 cents on how I should approach this meeting today. He really has no idea what he wants and everything is on the table

What should I be asking for knowing I am entrepreneurial and can't be managed. But do well to mange myself and get shit done


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s