Process of taking (buying) over a business ?

[kzar_kzar]

I have an opportunity to buy a somewhat successful business with everything attached including suppliers and customers (b2b). It’s something that I have experience and have one or 2 person who can help me later on if needed.

however, I have never took over a business and I’m afraid my proposition might come off as somewhat naive or not interested .
What’s the best way to approach and show interest?!
the person selling is my ex-boss . Professionaly we are on good terms, my uni professor is also working with him.
the business was managed by his friend who’s retiring.

also

Other than monthly rent, utilities cost and suppliers, current supplies/stock, machinery what are the other things I need to pay for before getting business under my name?!
Tia

help your brother

 

[FlirtLife]

Have you watched "Shark Tank", to hear how they value businesses and how much they'll pay?

If you overpay for the business, they won't care if you're naive. Have you hired an accountant to look over the company's books?

 

[sharkfinale]

the person selling is my ex-boss . Professionaly we are on good terms, my uni professor is also working with him.
the business was managed by his friend who’s retiring.

If you are in good terms, just go and talk to them.

Unsexy But Thriving Businesses: The Hidden Opportunity Gifted To Us By Baby Boomers

Nearly 10,000 Baby Boomers retire every day. Many of them own businesses. Here's the problem: there aren't enough Millennials and Gen-Z interested in taking over these businesses. This creates an opportunity for you. Here's what you should consider.

www.forbes.com

Is it this kind of situation? Then, he might just be thrilled someone who he knows is willing to purchase it.

May be if they trust you, the deal could even be structured in a way you do not have to pay all the money upfront.

Ask for the details you probably would not know as employee. Rent lease terms, inventory turnover, collection period, liabilities, licenses, regulations etc. You ask them directly all the expenses. And as the previous guy mentioned get the books looked by accountant, before you quote any figure.

I’m afraid my proposition might come off as

Depends on the proposition. Only show interest, do not have any proposal before you check the books.

 

[kzar_kzar]

If you are in good terms, just go and talk to them.

Unsexy But Thriving Businesses: The Hidden Opportunity Gifted To Us By Baby Boomers

Nearly 10,000 Baby Boomers retire every day. Many of them own businesses. Here's the problem: there aren't enough Millennials and Gen-Z interested in taking over these businesses. This creates an opportunity for you. Here's what you should consider.

www.forbes.com

Is it this kind of situation? Then, he might just be thrilled someone who he knows is willing to purchase it.

May be if they trust you, the deal could even be structured in a way you do not have to pay all the money upfront.

Ask for the details you probably would not know as employee. Rent lease terms, inventory turnover, collection period, liabilities, licenses, regulations etc. You ask them directly all the expenses. And as the previous guy mentioned get the books looked by accountant, before you quote any figure.



Depends on the proposition. Only show interest, do not have any proposal before you check the books.

thanks brother;
Yes situation looks like the article as he’s old and doesn’t want to continue. Funnily it also deals with restaurants and retail by providing supplies. They have pretty gd contacts and customer bases so if numbers are gd than I might have a shot .
Thank you , I will definitely keep all the points while discussing . Meeting tmr.! And if everything goes good I’ll update in few days.

 

[sharkfinale]

thanks brother;
Yes situation looks like the article as he’s old and doesn’t want to continue. Funnily it also deals with restaurants and retail by providing supplies. They have pretty gd contacts and customer bases so if numbers are gd than I might have a shot .
Thank you , I will definitely keep all the points while discussing . Meeting tmr.! And if everything goes good I’ll update in few days.

Good luck.

 

[BackInTheGame78]

Buy laundromats. They are the most profitable business with the highest margins you could ever hope for.

 

[kzar_kzar]

Buy laundromats. They are the most profitable business with the highest margins you could ever hope for.

Thanks;
I have no experience and contacts with laundromats but I’ll keep an eye for it

 

[kzar_kzar]

Good luck.

Well the deal didn’t go as I was thinking;

he wasn’t showing me accounts on this particular business so I walked back .

 

[sharkfinale]

Well the deal didn’t go as I was thinking;

he wasn’t showing me accounts on this particular business so I walked back .

Good.

He was not trying to sell. He was trying to scam.

 

[ludovic991]

It's super common to feel naive the first time! The biggest thing people miss is the quality of the assets they are counting. You're listing stock, but is it all current? Factor in inventory obsolescence, especially B2B parts that might be 5 years old. That's money lost right there. You need a third-party audit, can recommend Bridge Point Business Brokers