Valuation of my biz & Sale

[pathofphanuel]

Been in business for 38 years same location. I own a 7000 sq ft building on a 30000 sq ft lot .
16 employees
Cash flow 1.5 million- business owner takes out 200 k salary. Everything is paid for . Profit on the books to keep from being taxed is around 25-50 k a year . I’ve got two employees that could take over, but I’m struggling with a price. My accountant and his firm suggested something it it seems off . Im 65 and need to find my a way to put my business in my employees hands . They would pay rent and I would like something for my Brand . What do you think and is it a bad idea to carry the note or any part of it . Now interest rates are pretty high at the SBA right now . Any suggestions? It’s a service business in the hunting industry in Ak.

 

[tdrum99]

@pathofphanuel Could look at an ESOP plan, depending on how long you want to stay around.

A business making $1.5m but only showing $25k in taxes seems, shall we say, challenging to value.

 

[kermos]

@tdrum99 OP might be finding out why cooking the books can have a downside

 

[cavwda]

@kermos This exactly. Should have planned this sale for the last 3-5 years and paid more to Uncle Sam for this eventuality.

This deal will be impossible to finance at a valuation the owner will be happy with.