Buying a Business

>>3134197
Bumping this thread because I like your question and this is the kind of discourse that I'd like to read on /biz/

>>3134209
cheers, seems like its full of bitcoin and stuff.

>>3134197
How much do they want you to pay?

>>3134323
He said £28k, but a cheeky offer can be made. Although I'm not sure what a cheeky offer is.

>>3134424
Honestly I'd offer him a really low price, and start your own repair shop. You won't need more space or tools till you have a backlog of work.

Assuming you succeed, the next challenge is learning how to stop working and switch off. It's hard not to obsessively think about work when you own your business.

Cheeky offer translates to;

>Offer me something! I haven't had any offers yet!!

>>3134509
That's the thing really is the stress of it. I used to be a manager of the workshop for a different company. That alone was annoying and stressful.

>>3134807
You should find out how much debt the company is in, one.
take steps to formulate your own valuation. Assets? Cash accounts? Customer good will? Location? Reoccurring expenses? Long term liabilities? Average revenue?
After you have that number. Multiply it by 25% and make an offer. If that number is negative consider walking away.

>>3134865
I already work for the guy.
The shop has to sub letters who pay most of the rent.
Location wise it's very central to my town only one of three bike shops in the area, if you call halfords a bike shop.

No real reoccurring expenses, long term liability would be that one of the sub letters passed away. He is getting on a bit.
I would need to cover the business rates, the remaining rent but it needs to have stock of new bikes that fit the market.

A refurb of the workshop, it's such a mess at the moment. No online presence, no advertising.

Assets include all current stock and selection of crappy used bikes, no clue about cash accounts and customers like the shop.

He has built it up over 10years from a market stall to a shop

>>3135073
I don't know if they guy keeps accounting records, but when buying a business people usually have them audited. It's apart of the due diligence done by the prospective buyer.
I'm not saying you should audit them, but knowing how long it will take to recoup 28k is a good start.
So he's able to pay you and himself. +any other employees +cheap lease +insurance +utilities. Then have enough left over for stock to sell. That might give you a very rough idea of what the business makes. Certainly not enough real info to make a decision on though. If it were me, i'd need to look at the accounting records.

>>3134197
there's a reason he's selling it OP, remember that
Offer him 10k

>>3135073
fuck just buy it and sell the property. bike shops suck