The Boss went into the hospital and came out ten days later and two toes short. His refusal to heed the advice of everyone around him and take care of his diabetes has finally caught up to him. He had a blood infection and due to poor circulation in his left foot the infection caught hold there and they had to do some cutting to stop the spread. So now he's off his feet until Christmas.
Our accountant told us that if we don't buy the company from him now, we're fools. So we're working on Plan D, which is remarkably like Plan A. Again on advice from our accountant, we are not looking to extend ourselves by borrowing the money. The plan would be to pay as little as possible each month as well as a percentage of the net income after taxes and depreciation. Right now we're thinking $4,500 per month plus 30% of net income up to $150,000 total. That's a lot less than the $250k we've been batting around, but we want to start very low and work back to that number. $4,500 per month may sound like a lot, but this summer he's been averaging about $7,000 per month in draws. So right away our cash flow improves.
And we have to consider the very real possibility that the Boss doesn't survive the next nine months. His divorce is final so the company will pass to his two twenty-something kids. So we're trying to get the Boss to create a succession plan giving the three of us ownership and controlling interest, leaving the kids with a small percentage.
No comments:
Post a Comment