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I really don't know what to think about this.

Discussion in 'Business Management' started by TyrantDesigner, Aug 29, 2012.

  1. TyrantDesigner

    TyrantDesigner Art! Hot and fresh.

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    So yesterday the owner of the shop called ... told me that the company could be mine for a horrible, HORRIBLE price. :frustrated: I didn't want it, never talked about it, and now ... I REALLY don't want it.

    What would you do if the owner of your shop offered you to buy the company for such a redonkulous number that you almost want to just walk out the door ... and possibly not come back? That was my monday.

    Kicker is ... it's a sole proprietorship so it would have to incorporate just to be sold, and the owner won't do that ... so it's not a sellable thing. Property and assets yes ... name ... no.

    So question is ... what the hell do you say to something like that when I know the owner will want to know sometime this week? Because I know laughing and saying I'm not an idiot and I'm not buying you out for just under 3k percent markup on everything.

    So I need your help on this one guys, I don't want to offend, but I can't accept and have never been in this situation.

    I mean ANY help. I mean, should I even stay if the owner thinks that it would be acceptable for me to buy the shop knowing that it will take well over a decade just to pay it off ... if I don't pay myself? I mean how do I tell someone I will NEVER buy them out in such a fiscally irresponsible way and still keep things all "nice, nice" between owner and employee? And just saying, "Sorry, I just can't do it." isn't an option, since I know the owner well enough to know ... I will need a reason.

    I swear ... it's weeks like this, makes you want to say "**** this!" ... and go fishing instead.
     
    Tags:
  2. Marlene

    Marlene Major Contributor

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    seems like the biggest issue is you feel is his charging more than it is worth. could you suggest that he get it appraised?
     
  3. TyrantDesigner

    TyrantDesigner Art! Hot and fresh.

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    property is already been appraised by the county at taxable value ... and I know how much the assets are worth ... for every dollar the shop itself is worth at face value ... I would have to pay $28.9 dollars for every single stinking dollar. And the name definitely isn't worth the extra bit, let alone, can't be transfered unless is incorporated in any way ... and that won't happen.
     
  4. letterman7

    letterman7 Very Active Member

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    Is it just you in the shop or are there other people involved? It doesn't matter whether you know the owner "well enough to know" - it's strictly a business decision on both your parts. Either he gives you a reasonable price for the equipment and client list (like Marlene suggested, get it appraised) so you can make an informed decision, or it's up to him to make the next decision in the companies direction. Being a sole proprietorship has nothing to do with being able to sell the company as such, it would just be different paperwork since there are no shareholders involved. In any case, a lawyer should be on standby to represent you.
     
  5. TheSnowman

    TheSnowman Major Contributor

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    Unless it's a giant money making cash cow...I don't think sign shops are worth too much really. The equipment, yes...but the actual name doesn't go a ton further. I bought mine for 25K from other family members 8 years ago. That was old equipment, and just a shop full of random tools like work tables, saws, and stuff like that. Looking back on it, I still feel like it was too much, because the first thing I did was buy all new equipment. I have no clue what your number is...but it sounds like if you are interested in buying it, you just need to make an offer of what it's worth to you, and they'll take it or leave it.
     
  6. Craig Sjoquist

    Craig Sjoquist Major Contributor

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    Just say I'm not interested in buying ..period.. the more you add to it the more your are caught in bull.

    If the person is a friend that is all that is needed,

    If the pressure is placed back on you, repeat not interested lets end this conversation please.
     
  7. royster13

    royster13 Very Active Member

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    Is he wanting you to buy it or just give him an opinion on value?.....
     
  8. HulkSmash

    HulkSmash Major Contributor

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    Just tell him you're not in a position to buy the business at the moment. Can't argue if he thinks you don't got the dough!
     
  9. Marlene

    Marlene Major Contributor

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    it doesn't sound like he wants to treat this like the sale of a business as he isn't doing what is needed to sell it like getting a fair appraisal of the equipment and materials as well as the property appraisal. then there's the inc. issue. since he seems to be pulling a price out of his a$$, just tell him to come back to you when he as everything appraised properly and has incorporated so the business can be sold. this is the sale of a business, not a yard sale, and thing have to be done right. since he isn't going to do any of that, that kind of ends the whole thing.
     
  10. James Burke

    James Burke Being a grandpa is more fun than working

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    I think you already know the answer, but with that said, now's the time to begin planning your next step for both outcomes (staying on with a possible new owner, or moving on should the business happen to close).

    He was generous in letting you know that the business was for sale, but now the ball is in your court and you need to begin prepping the "lifeboat" in case of the inevitable.


    JB
     
  11. James Burke

    James Burke Being a grandpa is more fun than working

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    Sounds like a good plan to help clear your mind some afternoon...

    In all honesty, tell him the truth why you're reluctant to jump at the purchase. Done with the right attitude, I think he'll be respectful of that.

    If you're honesty is not well received, then it's time to move on.

    JB
     
  12. Scott Reynolds

    Scott Reynolds Active Member

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    this. +1
     
  13. GVP

    GVP Active Member

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    My inclination would be to ask him politely how he arrived at the figure concerned? Why does he think its worth the money? It might give you an an idea if it's possible to negotiate?
     
  14. Gino

    Gino Premium Subscriber

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    First, ask him why he's selling ??

    If you are at all interested, make him a counter-offer, but only after you've seen the books, receivables, overhead and what he's spent money on in the past three years and what money went where and why. Make sure he hasn't been preparing for this day by hiding things.

    If he's offered you this business, he must've been thinking about it and figures you are his first obvious choice. If you don't buy, he's going to have to market it for the same reasons you're having second thoughts. It will cost him. You're his best option. Also, it sounds as though without you, he might not have a business to sell.

    Sounds like you have more cards up your sleeve than he has. Hold 'em wisely.
     
  15. Salmoneye

    Salmoneye Very Active Member

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    Sounds like there isn't much to think about, if you are 28-x away from one another, politely say thank you but no thank you.
     
  16. TyrantDesigner

    TyrantDesigner Art! Hot and fresh.

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    Just me, and the brother-in-law who helps with customers when I'm humping butt in the shop and doesn't want any thing to do with the shop except get paid ... don't blame him, being 85 and helping out ... I don't make him do squat if he doesn't feel like it. Sadly, if I'm gone, he's gonna 'retire' again and do something he likes ... not this. so ... with me not wanting it ... and no new owner going to keep an old employee (me) ... its land and assets.

    Had one in place for a year. :peace!: I started working here when I moved across the country for the wife's job ... did my work, made this shop profitable after 6 months of hard work and a year after that, had my Abandon Ship Bag ready in case I needed to start for myself again rather quickly.

    Buy, straight out buy.

    :frustrated: Damn it, why didn't I think of that. That could easily work. :thumb:Thanks.
     
  17. James Burke

    James Burke Being a grandpa is more fun than working

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    :thumb:
     
  18. SD&F

    SD&F Very Active Member

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    I agree that if you are really NOT interested in purchasing then tell you are not in the position. If you are interested at the right price, then it should be appraised and a fair offer made. No one should be put in a position to make a decision within a week on this kind of thing. Also, I would want to know why he is selling in case he is getting ready to make a change that will affect you.
     
  19. TyrantDesigner

    TyrantDesigner Art! Hot and fresh.

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    Thanks again guys, I think I know what I'm going to say when it comes up again. :toasting:
     
  20. Sign Up Graphics

    Sign Up Graphics Very Active Member

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    Sign Up Graphics

    :goodpost:
     
  21. edgette

    edgette Member

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    Talk about good will. I was approached about buying a business and I thought when the guy doubled the price of all assets he was crazy, but 28 times... Who would ever think that is realistic.
     
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