Hi all - At some point within the near future i'll have to make a decision and as I type this I do not know which direction would be best, or which makes more sense.
I work for a small consulting office, along with a coworker and our employer. The employer is looking to retire and wants either myself or the two of us to take over the company with compensation to him. I do not know what the compensation will be, but I assume somewhere around 20-25% of the company's annual profits for a number of years. Gross profits can be anywhere between $200 - $400 thousand.
The company has been around for over 20 years, and we have a few active clients that give us work regularly, including one very large one.
I am the biggest contributor to this company. My coworker was absent for a few years (but has since returned) and I was responsible for 95% of the work being produced. I handle all stages of our operations including roles that should be performed by our employer. My coworker shares the same responsibilities but it is uncertain that he will stick around when the time comes.
If given the opportunity, I don't know if I should take it over and pay him or venture out on my own. My initial feelings are to venture on my own, and my reasoning is explained below.
What options does my boss have? I suppose he can sell the company to a larger firm, but I don't know who would be interested considering the limited clientele along with the fact that neither myself nor my coworker will move with the company... if it mattered. It would be a company with no profits.
I interact with our clients every day, especially the big one (in fact, I alone communicate with them) so should my boss decide to close his doors, there's a good chance I can pick up where he left off. But in reality nothing would change.
I think it sounds harsh, and I like to think that i'm a fair guy, but I feel it would be a poor business decision if I bought the company. Am I being selfish? I talk to my wife about this but she doesn't offer much advice, except do what you want. It would be good to hear what other professionals think. Thanks