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Acetylene Oxygen President Bert Wolf on the factors that led to the decision to sell the business.
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Thank you very much sandy have have well George -- decision to sell his film company for over four billion dollars to Disney this year may save tens of millions of dollars in capital gains taxes.
If he can complete the deal before rates are scheduled go up January 1.
And while on a much smaller scale -- a lot of other deals being struck before the clock strikes and a 15% capital gains tax rate.
One of those deals was just made by Burt wolf who's a settling oxygen business has been and his family since 1936.
But which he just recently sold.
Before those higher taxes -- and Burt wolf.
Joins us now while you're certainly thinking like a billionaire urge because as -- presumably that's why George Lucas wants to sell right.
-- if you say said yes well right.
Why are you selling what -- what is the specific reason why you're selling now I mean the family's been in business for what three or four generations now why sell now.
Well.
We've had about pets I have had several years of really good business the energy sector and Texas has been really really -- My sense -- Zachary the fourth generation are not coming into the business.
And looking towards next year with the the tax situation in the medical.
Taxes on top of the capital -- capital gains and ordinary income and then.
With Obama Medicare coming down the road and the increase in regulation.
It was just time for me to sell my business tell us how burdensome the increase in regulations has been for you.
Well I mean this is just my opinion that I feel like since.
I don't the last four years that there's been such a increase of government workers.
I think there's also been increase of government employees in the regulation area -- And they seem to -- more often -- stay longer and I felt like the last three years that I could have been in any business.
Because all I do is.
Work on compliance -- regulations and safety.
And fill out and work with saved my safety people.
And it's is you're juggling a lot of balls to.
Satisfy a lot of regulators and I felt like.
I feel like I'm doing more that than running my business is is that true do you really think that your spending more time on compliance.
And regulations than you do on running year old business.
Well -- I believe -- when you couple that with the insurance in trucking.
And licensing.
Medical insurance.
Business -- today is really not.
Does not have a whole Lotta time to run its business that's all he seems be doing is is juggling all all those different things and I just brought up.
Now canned oxygen is used by lot of hospitals of course I guess hospitals are or some your clients.
Because of that does that mean that you would be hit by this obamacare.
Tax on on -- suppliers of medical equipment.
Well I don't think there's so much affects me -- in the compressed gas business we sell medical oxygen bulk oxygen to -- transports in in similar cylinders which you repurchase cans.
-- I and I'm not aware that tax.
OK so you wouldn't be directly hit by that but certainly -- with regard to your employees you would be it.
Oh absolutely I mean with before this is even happen over the last 23 years month on medical.
Premiums remind myself of my employees and they go about 2530% a year.
In this is a for a volunteer is even kicked down.
It's scary.
Do you know of others other small business folks like yourself who were in the same position -- just.
Just are tired of all the regulations the extra tax and what's coming on why would Obama care they wanna get out.
Well I don't know many myself but if you I think if you talk to any.
A transactional -- attorneys -- -- -- -- bankers you'll see that there's a rash of of many companies to try to sell the business before the end of the year.
And finally why is it that your kids don't want to get in the business.
Well.
I'm in some other businesses that I've kind of encourage -- to go into and and they really -- -- gonna do their own thing and so like I'm very supportive of that.
Well good for you your support of debt particularly okay.
I mean -- you for your kids not to join -- company has been around for three generations of must be tough Bert thank you very much for coming in appreciate it.
Thank you very much Burt wolf from a settling notch to a formerly settling auction which is just been bought by another company thank you -- sandy over to you.
