Business owners/Sarge??

**blackSS01** · 12-22-2009, 12:43 AM

There is a Super Walmart in the area...but they can't sell what this shop sells, so I would even have Walmart beat :hint: :hint:

**35th-ANV-SS** · 12-22-2009, 12:50 AM

few hundred for an inspection/appraisal i think. maybe 250ish

**wheeliE-maxx** · 12-22-2009, 12:52 AM

Originally Posted by blackSS01

There is a Super Walmart in the area...but they can't sell what this shop sells, so I would even have Walmart beat :hint: :hint:

Sex shop? Creepy

**blackSS01** · 12-22-2009, 01:41 AM

Originally Posted by wheeliE-maxx

Sex shop? Creepy

Not even close.....and $250 bucks is well worth an inspection

**JHayesLS1** · 12-22-2009, 05:04 AM

You need to get a CPA and make sure he has always had an unqualified opinion from the CPA as well. Can't be too trusting of people.

**tnthub** · 12-22-2009, 06:07 AM

You need to take a hard look at the local environment if the revenue stream is based on local income and run some "what if" scenarios.

We had a Walmart move into our area around 1990 or so... 19 years later our downtown area is pretty dead. Retail shops have mostly gone out of business and have been replaced by restaurants, our intown department store is gone, our in town gas station is gone, we have many empty buildings and the rent is extremely high.

The Walmart takeover was a long slow process that was very subtle. Because I perform IT services I have not been affected but I discontinued sales of hardware and software by the end of 1999 (except for corporate software licensing).

Now we have several mall areas and I do not see a revitalization of main street happening anytime soon.

Take a hard look at the area and the factors that stimulate customers to frequent the business. A single large employer in the area that has layoffs could send business into a tailspin overnight.

**Spaz** · 12-22-2009, 06:20 AM

Originally Posted by blackSS01

I have some questions from some of the people here own businesses. While on vacation I ran across a business thats for sale that I could run and could make a lot of money off of it. Here is some info without giving up too much info:

Turn key operation, everything comes with it to run it.
Price is $350,000.00 to own it.
Building alone was appraised this year at $345,000.00
Equipment plus full stock equals approx $75,000.00
Building comes with 2 apartments so I would have my living taken care of since its a 7 hour move.
Business GROSSES $800,000.00 + a year minus renting the apartments.
Business was established in 1950's
Owners will stay on 2 weeks for training and are retiring in the area for further help.
Owner didn't disclose NET earnings but said it was 6 figures
Owner gave me the bank he banks through, he now fully owns the operation.
Business has a strong hold on the area for what it does.

So thats a good chunk of info, my credit isn't that great but I have credit and only about $3000 in debt. If I had to, I would sell my Camaro/everything I could for help if needed. I'm thinking that regardless I should be able to get the loan off of the information the bank has. They should know what it makes every year. He has banked with them his whole life, would be my first time with the bank. What do all you owners think? Never did this before but would have no problems running it

It sounds too good to be true but I have other info that I don't want to disclose.

first thing you need to do is get a lawyer if you're serious about this...

**gwballin** · 12-22-2009, 10:02 AM

According to you you’d be buying tangible assets worth $420,000 and intangible assets such as the Goodwill and reputation the business has generated since the 50’s, customer lists, etc. all for the rock bottom price of $350,000. – Red Flag

**blackcar** · 12-22-2009, 10:18 AM

Originally Posted by 35th-ANV-SS

few hundred for an inspection/appraisal i think. maybe 250ish

I think more. A house inspection in our area can run you as much as $400.

**blackSS01** · 12-22-2009, 12:23 PM

Originally Posted by gwballin

According to you you’d be buying tangible assets worth $420,000 and intangible assets such as the Goodwill and reputation the business has generated since the 50’s, customer lists, etc. all for the rock bottom price of $350,000. – Red Flag

Area up there is totally different from anything you would more then likely know. Shit is extremely cheap in that area. I found a 4 bedroom/2 bath house for $30,000.00 that looked to be in good shape (I am not a professional inspector but been in the trades a lil bit

). I found a 2 bedroom/1.5 bath with 100 acres for $100,000.00. The price he wants is actually high compared to all other businesses that are for sale in the area. The area has VERY HIGH tourist (ie: Snowmobiles, ATVs, Dirtbikes, fishing, etc....) So I would be covered all year instead of having down time in certain seasons. I called the bank today but have not got a response yet. We will see.......

**gwballin** · 12-22-2009, 12:35 PM

Originally Posted by blackSS01

Area up there is totally different from anything you would more then likely know. Shit is extremely cheap in that area. I found a 4 bedroom/2 bath house for $30,000.00 that looked to be in good shape (I am not a professional inspector but been in the trades a lil bit

). I found a 2 bedroom/1.5 bath with 100 acres for $100,000.00. The price he wants is actually high compared to all other businesses that are for sale in the area. The area has VERY HIGH tourist (ie: Snowmobiles, ATVs, Dirtbikes, fishing, etc....) So I would be covered all year instead of having down time in certain seasons. I called the bank today but have not got a response yet. We will see.......

So what was the point of the appraisal, if the building is worth less than what it was apprised for? Shouldn't the appraisal have taken into account the area the building is located, condition of the building, comparable sales? Yes it should.

You suggested the building was worth $345,000 and the equipment was worth another 75,000. Is that not the case?

All I’m saying is that you have to be concerned when the asking price is less than the fair market value because why would someone sell something for less than it is worth?

**pajeff02** · 12-22-2009, 02:01 PM

You really need to look at and study the profit and loss statements for the past 3-5 years. A vague reference to "net income of six figures" does not cut it. Other than sex, the only other thing Walmart does not sell is liquor to my knowledge.

**blackcar** · 12-22-2009, 02:14 PM

Originally Posted by pajeff02

You really need to look at and study the profit and loss statements for the past 3-5 years. A vague reference to "net income of six figures" does not cut it. Other than sex, the only other thing Walmart does not sell is liquor to my knowledge.

In some places Wal-Mart sells liquor. I've bought a 1/5 of Capin' in one. Cant' remember the town tho

**67CamaroRSSS** · 12-22-2009, 02:26 PM

Gas station with associated car fix-it shop?

**Brian H Drifer** · 12-22-2009, 02:48 PM

as a rule of thumb a business is worth at least 4 times its net earnings.

**pajeff02** · 12-22-2009, 04:11 PM

Originally Posted by blackcar

In some places Wal-Mart sells liquor. I've bought a 1/5 of Capin' in one. Cant' remember the town tho

Well... then the Walmarts around here must all suck.

**Brian H Drifer** · 12-22-2009, 04:18 PM

Originally Posted by pajeff02

Well... then the Walmarts around here must all suck.

gotta love PA

**Hi-Po** · 12-22-2009, 04:24 PM

Off topic: Walmart is one of Americas largest problems

**Brian H Drifer** · 12-22-2009, 04:27 PM

Originally Posted by Hi-Po

Off topic: Walmart is one of Americas largest problems

so is the government... hell the government should run Walmart

**gnomee** · 12-22-2009, 05:50 PM

After thinking a little more about this I have to question how the company gets its customers.

From your posts, I believe this business makes products that are rare or special in some sense.

If this is the case, make sure there is a viable way to maintain AND increase the current revenue. If the current owner is the main sales driving force and every current customer is on buddy terms, you may have a problem when you take over.

Almost EVERY business is reliant upon how and who aquires sales. This is VERY big deal. Also consider how much is spent on advertising and if you feel you are going to be able to improve in this area.