Yan Dabang and his wife had officially retired.
Having proactively given 15% of their shares to their technical staff, the sale of Yan Dabang's company did not immediately turn their savings into a nine-digit figure.
Normally, the sale of a company could fetch at least triple its annual profit.
In such a pricing case, the buyer could recover the cost in three years, and from the fourth year, it's all profit.
However, it was a difficult time for the manufacturing industry, and a significant part of Yanlu Machinery's profits remained as accounts receivable.
When Yan Dabang and his wife sold their company, they only set an estimate of one hundred million for Yanlu Shoe Machine.
This valuation, equal to a year's profit of Yanlu Machinery including accounts receivable, did not follow the "industry norm" at all.
