Inherited Coal Business: what to do now?
I just graduated from university with a degree in engineering and finance. My dad wanted to retire and want me to replace him as the head of his coal business.
Our revenue is about 100 million USD a year; the business model is basically to work together with coal concession owner to split coal trading profits. We serve as the contractor, and finance most of the initial cashflow.
Question: I know coal is a sunset industry and its death is accelerated with the current sentiment for the climate, but if you were me what would you do? I lack the wisdom and experience to have vision for where the company is going to go other than just keep mining.
Apologies in advance if i posted this in the wrong topic: Private Equity. But i just thought PE people are already veteran of any kind of business and has seen companies rise and fall.
Since you don't necessarily have the experience and/or desire to run the firm by yourself, I'd suggest selling it either to a PE fund, a strategic acquirer or see if the management would be interested in buying it through an MBO.
Which country/countries does the firm operate in?
I have the desire to run the firm.
My focus currently is in the details of the business because I am still learning it, so its difficult to zoom out to see where I can go with this when I am still just learning the details.
Definitely selling it to an acquirer is an option. But i was thinking more in the lines of turning the firm into more of a commodities trading house, or moving away from coal to more renewable energy; so big picture stuff.
The firm is located in Indonesia.
I’ve previously interned at a coal company abroad and I would say don’t underestimate the roal that coal plays in international energy. If you can’t run the company it’s better to sell it but there’s still opportunity (and buyers) if you’re smart about this
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