Sunday, November 29, 2020

Sold 30% of my company for € 1.9M, now what?

Hi all, I'm both writing to celebrate a small big success I've achieved and to look for advice on my next steps.

I own a tech business, of which I just sold 38% to a private equity fund. This is netting me € 1.9M, or 1.55M after taxes. I'm from a mid-class family, based in southern EU, I'm in the early 30s with my partner stay-home mom, and 2 kiddos (1yo and 2.5yo). Both I and my partner always lived very frugally. On avg, we live - everything included - with about 2.5/3k per month. We currently own our house (small apartment which I purchased for 185k in 2013, with a 125k mortgage on it) and have a few savings split in this way:

  • 25k as an emergency fund
  • 50k in cash
  • 7k invested in individual stocks
  • 25k invested in ETFs
  • 25k in crypto, which I purchased a while ago

Now, considering this huge liquidity event, I'm very concerned about NOT blowing away the money we got but rather use it as the ignition for our FIRE plan. Here is my current plan:

  • 400k to purchase a new house (where we currently live, is way too small for a family of 4). To keep costs down, we will move a bit outside of the city in a small village 10mins drive-away from where we are now. This will set us up potentially for our entire life as we will purchase a 200square meters villas with a 250sqm garden, we couldn't ask for more. This will be fully paid in cash.
  • ~400k I will invest in 2 more apartments that we will rent (in addition to our current house, which we will keep and rent). We will pay in cash for both apartments.
  • 100k will go in bitcoins (I truly believe in the principles behind it)
  • 300/350k will be invested in ETFs (with DCA)
  • 200k will be our emergency fund + liquidity
  • Any sum between 20-40k we will splurge and enjoy (will buy me a nice watch, go for some hardcore shopping and we will plan a few family trips as soon as COVID will allow it).

This is my overall plan. My end-goal is to start building up passive incomes via a mix of real-estate, ETFs, and renting. As I'm selling a minority stake in the company, I will keep my job (my salary as CEO is roughly 140k/yrs after taxes) and after the lock-up period of 3yrs, I'll see what to do according to how the company will perform and when the investor will want to exit. I don't want to count on this as nothing is guaranteed.

So, this is my plan, any advice or recommendation is welcome. Thank you all in advance.


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