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Asking price $350,000-gross sales $750000 in 2006 small truck repair company. company made $1,350,000.00 in 2004 owner died wife runs company now.$280,000 in retail parts on hand ,buildings fair on 4 acres . all tools on hand are fair to poor.owner had rebuilt trucks to build up income , wife just runs repair shop only .have down payment just need input if this is a good buy . have been a mecanich for 16 years 36 years old,have none working partner 58 years old will want out in 7 years
No. 1. You want to look at the proffit & loss statement filled for last year. (All businesses have one) ask Questions to HEY HEY HEY mrs owner....verrify your INCOME dont settle for some doctored up statements.Anybody can write anything down (you know) ask for inventory receipts (outdated?0 thats up to you to decide. (you are a mechanic already - and by the way about that inventory)ahm ahm ask to see it and (take notes when you do) write down your eveuations. You willl be presenting your offer AFTER you have made your EVEUlATION. I dont want to see you get succered. I don't know without seein this place, but for you and at your age, this place could make you fall into a pile of s-h-x-t and come out smelling like a rose...if u know what I mean...... you seem serious? I am trying to help you present a viable offer as well as the REASONS why you are comming down on your price a little. eveulation evaulation evaulation how to eveualate No. 2. See if they will allow you to see income tax History too. No. 3. Try like hell to meet with their book-keeper to verrify that the#1 & No. 2 can be verrified. Make an offer based on some additional guidlines sir. I guess what I am trying to convey to you is that people can lie sometimes by conjuring up info. Call the Utility companies and see past history of utility usage Usually public info. (Heat and Cooling) Know anyone who will be doing work for you ? You could expand this business to include Body shop or pinstripping add some pole barnes (keeps the cars & employees happy) Start a towing business- Impound lot on the extra acers! wow you could make some serious cash!!!! Try not to put ALL your money into that down payment.(dont max out your credit & dont max out your bank account fof future down payments for loans!!! Is this place to big for you. you could make tones of money or loose your a--s Gee you are luckey I am thinking and in a good mood. wish I was your age!!!Ha Ha Ha! You are a mechanic allready. Ever had one of their customers after they were there? ....what did they say? how far is this place from wher yu can refer your customer base that yu already have?If you buy this place yu need to (print out business cards or something to let ALL your current customers know that you are MOOVING! bYes, Hon, my hairdresser does that. get it ducks in a row. 30% of customer base can be lost when a business changes hands. Some people wont like you or they didn't like the previous owner. (hats why shes sellin) well knowhow, back to you. Do your fing homework! Ask your wife, or your mom or your friend to make a call a day for you and instruct them to take good notes (you should really do ALL this checking out yourself though) BRAINSTORM BRAINSTORM BRAINSTORM TOO BAD THAT WE ARE AT WAR.(I 'm not with I am an american in an atemp to help out oneanotheryou but you know wher I'm commn from) anyway, so much possibilities on this place Dont offer a price thats too low but can you afford it realizing you will have additional costs later/ Ok. Now you are a more educated buyer. when you have a dream never become discouraged jus as long as you are not out to injure another human being in that process. I will be visiting a repair shop - you! want oto hear my car problems everyone has them if you are a ogood mechanic go for the moon! Advertise bro! incorporate your business. (shop round for an attorney they are blook suckers too. looks to me like 2006 sales may be a LITTLE inflated. After all, she lost a parther... never mind you are in that community not me, or are you (don't say) Does look like this place could have some real potential just so long as you dont have some under ground storage tanks that leaked all over and need to have a hazzard company clean up some toxic wase so you can do business. As you know we can't contamminate the land You might want to check it out with the DNR(Department of Natural Recources) for violations Get on the phone check them out- hoot you re allready on line start here! go to the city then the state Make damn sure you will not be responsible for some environmental clean up repairs when you take ownership. (ha ha ha ha , you can lo, take this cost off the purchase price - nice. & smooth just like they have that nice smooth PRice for SALE When in Doubt check it the heck out! I have to admit that 4 acers sounds nice.........(ho ho ho ho) If I were you I would definately do my homework on that one. Now, being all is said and done and everything goes well (no soil contamination) you win the bid, after a few more things to check out of corse u know caue thats why your askin/ right? It IS possible for a Co. to have a big gross income and still be at an operating loss. Several things can contribute to loss: operating expense is greater than income What is being paid out??? Utilities, advertising(that is 100% write off on income tax) overhead costs? Utilities & payroll, phone, cable supplies(I suppose that would translate to parts as in automotve replacement parts that was purchased to conduct business. You are a mechanic already so do you know the cost of replacement parts? Check that out, probably low. thats how you guys make money - through know-how and skill so shut up keep reading as i am only trying to help you lo You will be supprised ot learn there is a LOT of hidden costs to owning a business. Now, STUDDY that Proffit/loss statement. You know you will probably spend YOUR money a little differently when you become the new owner. Will a municapality be inspecting the business for compliance of building and other Code violations? Hazzards? How much $$ will it cost you to comply (fix situations) Where I am they do. anything commercial (must go through an inspection compliance process.) The city inspector comes in, inspects the premises, finds (hunts) for so called code violations and someone has to fix the problems. So you or the seller ( This can be a good negation tool for you because if you are puttin out your $ then that amount should be taken off the Base price($350,000)ok How is the reputation and what YOU can do to change it (big banner UNDER NEW MANAGEMENT!!!) I studdied management in college and the #1 reason a business will fail is because of a lack of operationg capital. In other words, somewhere in the near future after taking over you will have to come up with $$$$ for an unforseeable event on top of your expenses. I would shop around to check out what else is on the market for a comparasion. I don't reccomend going into business with a partner (unless he is your partner already) I suggest putting friend (partner ) on payroll as a tryout first. also NO. #1 accounting rule: When you hire a book-keeper NEVER EVER have them sign checks, make bank deposits or withdrawalls. You can have the book-keeper Fill out the necessary info on the pay-outs- but YOU bottom line (sign) them That way you know where your money is going. Since you are already a mechanic you know a lot about that end of it. I wish you lots of luck and hope more educated people give you input as well. Return visit the place with paper & pen. (clipboard works nicely) You are taking notes, jot down everything ITEMIZE EVERY ITEM by catorigy 1. (TOOLS & EQUIPMENT) & (CONDITION OF) example- HOIST #1 needs replacing HOIST #2... POOR/UNSATISFACOTRY - NEEDS REPLACING FAIR - UNREALIABLE (may work but not dependable & will need replaceing in near future - state why) good- works excellent-very dependable no problem thats why I am buying this place!!! COMPRESSOR & its conditiion at the end of every note you must write down wether or not you need to repair the item, replace the item & why. STEP II PRESENT Fairhope WRITING TO OWNER YOUR OFFER and why you are offering a lesser amount than the a price being asked. You are much more likely to have your offer accepted. Feel free to e-mail me with questions. gettin too elaborate here....know what I mean? I can calculate a loan amount for you (have the means) I don't want nothin Thats why I like ASK Yahoooooo!!!!!so, I have a relative that is a mechanic and I studdied Business. Just tryin to be sincere.. too bad, because What the world needs now is more sincerety bottom line- if I had your know how i would be on the phone, on the enternet utilize all your spare time onthis one This could be the opportunity of a lifetime or acomplete failure ovrstated or you dont have the money for this one at least make an offer. suggestion- after all I suggested go 10-20grand UP\\ and good luck! tough decision ea! so now you have reasons for your offer. Gie yourself a time limi say 1week to answer the Q presented to youu (or loose the bid) don't feel pressured though. Reaserch is important. Do it Environmental protection agency...check them out.