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OK, /biz/, I've got a bit of a situation here. My father

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Thread replies: 45
Thread images: 4

OK, /biz/, I've got a bit of a situation here. My father was a business owner who process and sold agricultural commodities. However, he recently suffered a completely debilitating stroke. I just graduated college and my mother has asked me to manage/sell the company and in return she will give me partial ownership. The company itself is no longer profitable and is in a declining and consolidating industry. Also, with no experience, I've got no idea what the fuck I'm doing. The company is nearly out of cash, but we still own the property (pic related).

The 2 main warehouses are pretty much open air. There is no heating/cooling and it is not sealed against the elements. Also, the roof leaks and it is dirty/smelly as fuck. We do have rail access.

Wut do?
>>
Liquidate everything as soon as possible.
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>>979586
Turn the business into something profitable or liquidate all remaining assets and cash out for pennies on the dollar.

Not sure what you expect /biz/ to tell you. You could probably lease the warehouses for storage assuming you own the property and aren't just leasing it yourself.

I think dad would be proud to see his son revolutionize his creation and make it successful again.
>>
File: bizlit.jpg (2MB, 1345x1450px) Image search: [iqdb] [SauceNao] [Google]
bizlit.jpg
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Read these, they should help.

http://eventualmillionaire.com/Resources/ThinkandGrowRich.pdf
http://www.what-is-coaching.com/support-files/lazymansway2riches.pdf
http://www.fxf1.com/english-books/The%20Intelligent%20Investor%20-%20BENJAMIN%20GRAHAM.pdf
https://torontoinvestclub.files.wordpress.com/2014/07/security-analysis-benjamin-graham.pdf
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>>979591

We do own the property outright, but it isn't exactly in great shape. Looks pretty post-industrial wastelandish.
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>>979600
Call a commercial realtor. Did your father not have any managers working for him?
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>>979608

No, he was the sole owner/manager. He had two other office employees, one of which just died and the other is a 90 year-old senile man who just filled out forms. All the others are factory peons.
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>>979600
Where is this located? One thing you could look into doing is renovating it into some place for airsoft of paintball. Often times those kind of old factory places become really popular with those activities and if you run it well (Hire good refs and run interesting events) it'll be moderately ok. Look into how many airsoft places are in your area. If there aren't any then do not go that route, if there are a bunch then you should go for it.
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>>979615

East St. Louis, IL. It is the most dangerous few square miles in North America. There are actual shootings near our place on an almost daily basis.
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>>979619
Set up a recycling center / scrap yard. If your in esl then there will be plenty of crack heads bringing you shit. I'm sure a lot of it will be stolen, but who cares. Perfect with the tracks right there.
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>>979619
Jesus christ, what a location. That place is fucked.
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>>979634

Might be a good idea. We'd have to retool, retrain, and do a lot of research, but that might be an option.

>>979646

Probably.
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>>979600
I'll give you $10,000 to sign everything to me and walk away.
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call Cargill. Work a deal.
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If you can fix the roof you can lease the space to an industrial company. Otherwise sell it as is and move your money into something more profitable.
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>>979665

We're asking 399k right now. Pretty decent for 2 big warehouses, all the equipment, an office building, workshops, 5.2 acres of land, etc.

>>979667

Spoke to Cargill. Used to buy/sell with them pretty frequently. Don't think the facility is up to their standards as far as product and employee safety, though they might just be waiting to lowball us.
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>>979674
>We're asking 399k right now
You won't get it.
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I found OP!
http://www.loopnet.com/xNet/MainSite/Listing/Profile/Profile.aspx?LID=19327576
$450k
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>>979695

Yep, price is wrong on there though.
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>>979709

I'll have to contact my agent. We lowered it to 399 a while back.
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I have never seen a private property with rail access before, how does it work?

How do you get a rail car to come in to be loaded, and then where does it go? Like specifically what company do you call?

How did/do you get it?
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>>979755

We use a computer system to notify them when to pick up and drop off. Our service is Norfolk Southern, but can be switched onto other lines as well.
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>>979760

So if I want my own rail access what do I do, just call up Norfolk Southern?

Is there an annual fee? Who pays to build/maintain the track?

Sorry but I find this kind of stuff interesting.
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>>979695
Omg le ebin dox!!!! Ebin!!!!! Upboated!!!!
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>>979767

Well, you would need to be near their line, show that it would be worth their while, and build the track on your property. Track is super expensive.
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>>979767

or you could just buy this place
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>>979790
hey do you mind if I call up Norfolk Southern and arrange for some stuff I need to get rid of to be dumped on your land? I'm not even going to ask im just going to go ahead

I've got like 15 tonnes of gravel I need to get rid of before the local council or some shit stars suing me or something. you'll have to pay for the digger and labour though, but it won't be too much only like a few grand so don't worry I won't be out of pocket

if all else fails then I'll just unload with a dumper truck

thanks
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I read the flyer... former animal feed and fertilizer production facility... I'm guessing you probably have some on site contamination of some sort... soil, ground water, whatever.

Aware of anything? If you are, I think you need to consult with a lawyer on your obligations, if any, for remediation. May end up costing you more to sell than to just hold it indefinitely.
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>>979824

We never dealt with chemicals. Just rendered animal by-products. Meat, feathers, bones, and the like.
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>>979834
So what you're saying is you own a warehouse on a rail-line free and clear, and you can't figure out how to monetize it?

I mean, hell, you could buy almost literally anything at sub-wholesale prices, then sell at wholesale prices to all sorts of buyers, depending on the situation. Find out who's producing what near you, contact them, discuss bulk pricing, figure out who you'd buy their stuff from retail, see how much they'd pay you for it as a distributor.

I know nothing about this, but in 3 minutes of thinking I think you have a reasonable way to spend a week or two calling before you throw in the towel. I mean, you own the place, it's empty. You're not exactly hemorrhaging money.
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>>979855

Well, yes...

Nobody is producing anything near us, which is part of the problem. This is East St. Louis. The only thing left is a rendering plant, a noodle factory, strip clubs, and weave shops.
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You'll be able to operate on tighter margins than your father because you're not some retarded boomer who has surplus employees.

Find something cheap, buy it in bulk, keep costs down and sell.

Your dad must have had a customer list or suppliers, figure out what they require to operate their business and sell it to them cheaper than their current supplier.

Agricultural commodities may be in consolidation now but in the future that won't be the case. China's middle class is emerging and they are wanting more protein in their diets, look at New Zealand.
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can your dad not communicate at all? He would be your best adviser...
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>>979586
>Rapidly consolidating

This is a hot M&A market. You could sell the whole company to one of those that wishes to consolidate. Private equity, business brokers etc - don't get scammed. I know the ins and outs and could help but I don't know how serious you are. Where is the business located?
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>>979586
OP I'll also note I'm an experienced CEO. I can help you operate it and make it either profitable or more "sell-worthy" including boosting either your cash position or getting the right financing in place. If you want to talk we can chat on Skype.
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>>979755
>>979760
>>979767
Funny enough, one of my warehouses has a Norfolk Southern spur too. There's no annual fee, you have to maintain the track to their standard if it's private and you own it. We hold the switch as well.
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>>979928

No, he's pretty much done. Massive stroke and went all evening before treatment. Not much is left.
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>>979960
>don't get scammed. I know the ins and outs and could help but I don't know how serious you are
This sounds like a scam.
>Where is the business located?
This sounds like you don't know all that much.
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>>979963
>>979960

You work out of Buffalo Grove?
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>>979975
No - but I used to live near there funny enough
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>>979974
Except not. It's why I'm willing to put my name out there to OP, he'd see I have an actual reputation.
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>>979974
On top of that, yes I see East St. Louis - I glossed over the first post where he mentioned it, just looked over the Loopnet listing actually. The NNN Lease rate is probably a bit high for that building - it doesn't match up with the sale pricing.
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>>979981

Buffalo Grove is ground zero for business consulting scams.
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>>979984
I live in the southeast. Anyway, agricultural commodities - like you said about Cargill, it likely isn't up to their level of need or standard, but it can be useful for animal feed specifically, non-human consumption. Have you reached out to any of the companies in that space? And rather than just selling the building and dumping the business for $0, if you really want something you should be talking to private equity in the agricultural space.
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>>979984
The existing book of business, even if taking a loss, is worth something - dumping it and just selling the real estate is a blind move that is basically just lighting money on fire.
Thread posts: 45
Thread images: 4


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