Buy a Business

Re: [spiers] Buy a Business


In a message dated 11/3/03 10:02:48 AM, wileyccc@aol.com writes:

<<1. My husband and I are thinking about buying a wholesale biz importing
homeware. How can you tell if the biz is financially viable?

***Well, meet their most important custoemrs, check out the balance sheet and
income statement, tax returns last 3 years, test the receivables... and then
put nothing down and write up an agreement where you pay for the biz out of
the profits (after your salary, etc)... essentially the deal that makes sense
for the buyer the seller would be hard pressed to agree to.***

2. The biz we are looking at has inventory of floor sample and a showroom.
Are those necessary? Where you do store your samples?

***Samples are best positioned in the showroom of an independent sales
representative. A shwroom of your own is a big expense, a showroom of a rep
costs
you nothing except commissions if and when there are sales.

3. Many of the businesses are up for sale because the present owners are old
and could not keep up, I think these businesses need some new blood and a
more
modern way of managing, how fast and frequent would you recommend introducing
changes? What is the most important change?

***Well change at precisely the rate that customers require, which in gift
and housewares is a new line to consider every six months... as far as any
internal changes, do as you will. Does this biz have no inventory... more infor
may be helpful.***

John

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