Reply With QuoteI would value on past earnings off the P&L and look close at EBIDA.
Standard practice...
Yes I know, guess I should give alittle history. 42 year old industrial electric motor company started by my father who died 9 years ago. I Have worked here Seeming from birth with the exeption of school and now own it. I have over come many problems since pops died and I'm verry passionate about the place and so when they want to buy me out It put some thoughts in my head that aren't exactly heathy for buisiness (Like full time lake rat) so thats why I thought Jeff could use a little moral support. I say you have a price in your head though it on the table. They will counter if its enough take it. Oh and buy us a beer at the lake when you see us. Or, at least thats my intention
I would value on past earnings off the P&L and look close at EBIDA.
Smart man there... That is absolutely a great place to start...
Good job focker... I just had to say that!
thanks
its what I find I do a lot the last few years
Jeff I tried sending you a PM. I have an interested party. Call me
(909) 524-5924 Danny
Wow watch out Jeff. I curently have someone who will not expose him/herself trying to buy me out. they (trough a bussiness broker) Want to look at my books befor they offer a price. Fair? I did not offer "for Sale" they sought me out. I don't know who it is and won't show my books. Told them to offer based off what is public record, Give up some erest money and I'll show my papers. Again whoever it is I don't have a clue possibly comp? If they want to buy me out and a no compete contract guess they will retire me. this a verry tough desision good luck let us know how it turns out.
no intelligent person will purchase a business without doing Due Diligence.
which means show me your books let me recreate your financial statements and see if my statements match your statements. if they match we buy if they dont lets solve the discrepancy
My business is for sale on bizben.com... Most business selling brokers use
3 times what the Principal/Owner takes out each year, which in reallity counts as income. Salary, cars, perks, ect. or any fee's or BS paid out that the PERFECT new owner wouldn't ever think of doing or paying.
Remember everyone that buys a business is thinking they are going to be rich overnight, so in their mind they can do no wrong.
I have had my business sold 2 times, in escrow... but then with getting payments that I know the new owner can't make, and on top of that what would I do, I said no thanks... I want my payday if I sell and I want all of my money out of the business NOW...
Most all business brokers are trying to make their commission, they don't care how much you settle for or get up front, they get paid out of escrow. They all tell you that you will need to carry a note for the new owner.
So wait, i'm going to sell/give my business to someone and then they use the business to pay me? I can pay myself monthly payments and still keep the business...
you are so right
never sell a business unless you get your full sell price upfront from a reputable bank. if they cant afford to buy it 100% upfront in cash or loans they get they cant afford to manage or pay you
Started a florist for the wife two years ago. Business took off almost overnight, but working too much she had no time for the family. ( She wanted me to work weekends to help out) We tried managers but customers always complained unless she worked. So one of the emplyees asked I we would sell. We named a price that would cover a couple years salary for her and the employee found an investor to pay cash. Done deal. Kids love having thier mother back.
no intelligent person will purchase a business without doing Due Diligence.
which means show me your books let me recreate your financial statements and see if my statements match your statements. if they match we buy if they dont lets solve the discrepancy
I agree fully. But I don't know who the person is. could be comp fishing or something. If they are serious through out some earest money and I'll give up the books.
NO bank or SBA financing... If the person buying the business can't get a personal loan or... why would I finance them and hold a note? I'm not Bank of America or The Money Store. They need to get the money or financing on their own and then look for a business, after all they are the big shot going to light the world on fire... right.
I would rather be audited by the IRS than go through some SBA financing, with some morons from the bank which have no idea on earth what it takes to start a business let alone run one.
YUP!
here is the link 11 things to remember when selling/buying (http://www.sunbeltfresno.com/sell/000013.html)
11 things to remember when selling/buying business
its like this, what ever it make in on year put 50% on top of it and let it go.
just my input. good luck.
eric
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