Buy a Business

Re: Buy a Business

Hi John!
I am aware that seller's financing is usually the way to finance
buying a biz but to ask for no money down is quite another thing.
Would you elaborate on that and tell me how that can be done if I
have minimal or no experience in running a biz of any nature.

Also, I've been told that we are in essence buying the assets when
we "buy a biz". Is that true? What about the existing customer
contacts and owner's reputation? Aren't those valuable too?

Do you recommend buying a biz and why?

Thanks, Leigh.



--- In spiers@yahoogroups.com, wileyccc@a... wrote:
>
> In a message dated 11/3/03 10:02:48 AM, wileyccc@a... 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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