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Merging businesses?

J

john1

Guest
Hey guys, After a somewhat terrible start to the day i have recieved a call from a business friend and owner of a print shop that does offset printing locally. We have exchanged services as he wholesales to me and i do to him on occasion. We have done this for the past 5 years.

He asked if i would be interested in becoming a partnership and merging businesses together at his store front location. He told me he wants to take his business up a notch and believes both our services together would create a amazing clientel.

I own a custom PC, Roland Versacamm SP300i with no payments, a 24" vinyl cutter and various media for both machines outright. I would be bringing this into the store front and having a actual "shop" for once.

What are your thoughts on this and does anyone have advice who have done a move like this before?

I am very excited yet nervous as this could be what i always wanted.
 
2NinerNiner2

2NinerNiner2

New Member
A similar scenario transpired in my home town almost 30 years ago and both businesses are still doing well :) The only difference being that a new, standalone facility was constructed which accommodated both the printer and sign shop. To be clear, however, these were separate, well-established companies that ended up being co-located in the same building after having had their own, separate facilites for years prior. Upon entering, turn left for the printer and right for the sign shop ... one complimented the other :) As a customer of both, it was very convenient for me.
 
James Burke

James Burke

Being a grandpa is more fun than working
If it were me, I would stick with exchanged services. You're basically entering a marriage.

If you still feel inclined to do so, you need to meet with an attorney and have ABSOLUTELY EVERYTHING, short of a rectal exam, put into writing...especially how you, or he plans to exit, and full financial disclosures.

On another note...any P.O.'d (former) customers of either of you also may have long term implications. Go carefully.

JB
 
10sacer

10sacer

New Member
I just got this offer yesterday from one of my customers who is a digital offset printer, order fulfillment house and integrated marketing company.

We are meeting next Tuesday to discuss how a merger would be mutually beneficial, but it better be weighed heavily in my favor because right now I own everything outright - flatbed, solvent, aqueous printers and the whole 9 yards that goes with it, so if I am bolstering their capabilities but losing the freedom and autonomy I have now, i don't see it as a win for me. they do have much deeper pockets, though and some very large accounts. So... its a discussion at first and we will see where it goes...
 
2NinerNiner2

2NinerNiner2

New Member
+1 what JB said.

Also this ...
he wants to take his business up a notch
Click to expand...
Umm, what about your business?

Perhaps an option to consider is as in my first post ... co-locate both existing businesses, as indeed as he mentioned, it can be beneficial to both.
 
L

Locals Find!

New Member
Why not just see if you can rent space and see how that works out. Then if its profitable enough for both of you discuss joining forces down the road.

This way neither of you lose your businesses to a partnership gone bad.
 
WYLDGFI

WYLDGFI

Merchant Member
Hey John....personally I would not want anyone to have say over anything I can or cannot do as a company that would allow me to grow or expand. I believe you are better off with the relationship you have currently. IF it is beneficial to you for the actual store-front space.....just subdivide and lease the space. Like you said...left turn and right turn. The issue with that arrangement....and I have a lot of experience with it....is clients. You have to respect his and he should respect yours as well.
 
Techman

Techman

New Member
my first and last 30 yrs ago was a failure the first time the partner told me I couldn't have a fancy high back chair like he did.

Since then I would never consider a partner for any reason.
I had a close friend who handles ventilators. He ahd a partner who became a lead weight after a while because he wouldn't come to work and started the cocaine deal. The only way out was the death of the partner.

No partners no how no way.
 
J

john1

Guest
Well, we had another conversation this evening and leasing space and dividing it looks like it may be the best way to go.

He currently has a store front but is looking for a better location that would work for two shops in one building better. Monday is a meeting with the guy to find out further information. I'm pretty excited about it if i do say so myself, Finally going to have a shop.
 
Gino

Gino

Premium Subscriber
Food for thought. :popcorn:

You go into this venture hoping for the best and want to prove how good you are and whatnot. You brag about how you make money doing this or that and then he looks at your books, much more intensely. Before long, he knows and you know who has the upper hand. Before long again, someone will begin to feel the load while the other feels the glory. It rarely ever happens to both at the same time. Before long…. still again, the smarter of the two knows the other’s business inside and out of the other’s business. Guess who is no longer needed ?? Bingo.

You’ll begin to feel the pressure and will be by the rules and lawyers policies, not holding your own weight and will be allowed to be let go without any compensation. Guess who is still looking to further their business, after giving the farm away ??
:Oops:​
 
skyhigh

skyhigh

New Member
They can work, but the odds are against you.

I tried it twice, and both were a flop. The first was an offset print shop, and my "partner" tried to screw me big time. He was a thief.

The second was a bar/restaurant. Me and my partner were both too headstrong and had our own ideas how things should be done. He was a good worker, but had no business sense at all. We remain good friends today (amazingly), and we did have some great times. It was a fantastic place with lots of history.

Both were short lived ventures.
No more partners for me.
 
2B

2B

Active Member
from my law classes, everything and I MEAN EVERYTHING must be in writing and a lawyer goes through with a fine tooth comb.

you say moving to different location? will this location allow you access to your part and keep the partner separate? more to the point if you are not there can the doors be locked so no one can enter without you knowing?
 
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