I had a meeting where we were reviewing a couple’s joint tax return prior to submission. During the conversation, I was informed that while they were a relatively new startup company, they had received an offer to purchase their company.
The offer was reasonable. No one was going to get rich off of the deal, nor was anyone risking it all for the prospect of a future.
What the client was looking at was the immediate future and anticipated the company should be able to bring in more cash flow over the next few years than that which was contemplated in the offer to purchase.
I have clients whose initial purpose in starting a business is to sell it. Those businesses typically do not get far from the starting post. One must to have something to sell and the owner typically wants to sell for a maximum price.
So my client has passed on this initial attempt. It is probable that as the company grows that there may be other offers, but for now the client is looking to grow the business and use it to fund their lifestyle.