Buying a business, what do you think??

[floorguy]

http://www.ksl.com/index.php?nid=218&ad ... =175&lpid=

About this one???

the machine has 2800 hrs

No phone number with it as he has had it for 20 yrs, and it is tied into his real estate stuff


What you think?

 

[Mikey P]

so you get $8600 a year in commercial work, a LIST of 1100 names that if you were really lucky would get about 200 regulars after if you played it right and a van truck combo for 29k.


the ad is 72 days old.

If it's still up offer him 19K if you really want the package.


and verify that those commercial jobs are still viable.

 

[bob vawter]

no comment......HOWEVER


it's Sat......an' i slep in till 10:00 AM

WHAAAA HOOOOOO!!!!!

 

[GeneMiller]

i know someone who bought a company, list of names with the phone number, over 10,000 names and only paid 3500. the guy tried for over a year to sell everything for 80,000 . a list with out the phone number in my opinion has very little value. i wouldn't spend more then the equipment is worth in this market.

gene

 

[Guest]

IMO when buying a business a list without without a phone number and their tax returns for the last 3 years is only worth the equipment. If they can offer all three, then you know what your getting with the tax returns and you can see if you can operate it better.

 

[Russ Goddard]

Been there, done that. With the exception of a few and maybe as a starting point for your marketing efforts, the list isn't worth much. Some of the established accounts "might" stick with you but they are loyal to the previous owner, not you.

Value of equipment plus a percentage for a year is a fair deal. The guy could actually make a bit more if the business is as good as he says it is. It also gives him an incentive to help you retain those accounts (meaning, actually talk to them and sell them on what a great guy you are, how you are going to do just as good a job, blah, blah, blah).

All that said, depending on the equipment $29k doesn't sound ridiculously overpriced.

 

[John Olson]

Without the phone number you are not buying the buisness your buying the equipment. Like we talked about when you where in the store the residential list is worth nothing.The Commercial accounts arn't worth anything without a signed contract and they are only worth 20-30% of the contract as most are a 30 day no cause contract which means they could cNcel before you ever got to clean them

 

[Nate The Great]

Atleast you'd upgrade your machine.........

 

[randy]

I would offer him $7,000 down and tie the rest of the price to the performance of the accounts. Pay him a percentage of everything his exist accounts bring in until he has the $29,000 OR 5 years has passed. If he doesn't like that deal, run.

The phone number isn't such a big deal if he helps the new owner keep the accounts.

On a simple turn key transaction, his business is not worth $29,000

With his help keeping the accounts it could be worth much more to you and well worth $29,000 over time.