Preparing to make an offer to purchase a small business

[Sandy D]

Got the news today.

8 total offers. None were even close to what they dream of getting.

We were the highest to what they wanted because we research the value of the property, profit and loss statement, current orders, licensing, potential etc and they told us we were not within 100k.

They plan on selling the real estate by itself now and the business separately.

I asked if I can make an offer on the business only and they said they want what we offered just for the business.

I could go up some but not 100k+.

[rsot]

Rarely do the offers come in for what exactly is wanted - perhaps in Q1 or Q2 but then, other business will have debt to deal with from Q4 of this year before looking into acquiring a new business

[Sandy D]

Different for a small business as you can pretty much nail the value close.

I thought I was very close but the owners were looking to reap a ton of money beyond actual "value" and potential.

LOL They might be back because I dont think they are going to get double what most of us offered them.

[LoopHole]

Here's an idea. Start your own and take their customers muaaahhaaa

[jeffweico]

Originally Posted by Sandy D

LOL They might be back because I dont think they are going to get double what most of us offered them.

That wouldn't surprise me. Whether it is a business or someone looking to sell their 3 year old flat screen on Craigslist, many people end up grossly over-valuing what they actually have.

I can only say that I would not offer them anything above my comfort level. I have passed on deals before, although mostly for real estate, when the seller wanted too much money. One guy had even compared his house to what others had sold for in the area. Unfortunately, the houses that had sold at the higher prices were 1,600+ square feet, while his was just under 900 square feet. So, it would be like comparing apples and oranges. He refused to understand that. His house is still for sale and has been for over 3 years now.

Overpaying for something is never a good idea, in my opinion. It would be different if maybe you wanted to buy the house you grew up in and the owner didn't really want to sell and you had to offer 150% of the market value to get the deal done. But that would not really be an investment, that would be more like something you are personally passionate about, that you simply wanted to buy for yourself.

When I was younger, I never fully appreciated the house I grew up in. I thought nothing of it when my father sold it many years ago, he asked me if I wanted to live there eventually and I said NO. Now, it would be hard for me to afford it, as the last time it sold it was over $500k. Sighhh....

[Sandy D]

We all live and learn.

I dont need another business but knew I could expand this one big time but did not want to overpay as I already knew I could buy equipment and do some of it myself.

They are a well oiled machine and older folks not up to date with current trends so I though I could use their awesome skills, current business and equipment and location.

I wont offer any more. I went to the high end of my assessed value.

Unless they come in with some hidden sales etc I would not go any more then I already offered.

[GreenBean]

Originally Posted by jeffweico

When I was younger, I never fully appreciated the house I grew up in. I thought nothing of it when my father sold it many years ago, he asked me if I wanted to live there eventually and I said NO. Now, it would be hard for me to afford it, as the last time it sold it was over $500k. Sighhh....

Never been sure if it was because my Da was never at home a lot because of his Naval duties but he always insisted on having a 'home' as a land base.

We all grew up to buy houses early in life as opposed to buying autos.
Has proved to be prudent.

I inherited my maternal Grandmother's house after her daughter passed away.
Some family suggested selling it. I choose to keep it.

There is a wealth of memories there that could never be replaced.

[teedon]

Originally Posted by Greenie

Never been sure if it was because my Da was never at home a lot because of his Naval duties but he always insisted on having a 'home' as a land base.

We all grew up to buy houses early in life as opposed to buying autos.
Has proved to be prudent.

I inherited my maternal Grandmother's house after her daughter passed away.
Some family suggested selling it. I choose to keep it.

There is a wealth of memories there that could never be replaced.

I have to say i have very strong same feeling about the sentence above:"There is a wealth of memories there that could never be replaced."Because my story can tell you why

We have a big house at our hometown(it locted at village),but we have appartment in a big city and we live in the city,we only come back the hometown one time each year during the chinese new year peroid.

Many people ask us to sell our house to them but we refuse .Because when we go back our house,we are very comfortable and we have very good memories here and we like the house ,the furniture,the tree,even the grass as well.We are very enjoy the time when we go home ,that feeling can not get if we live at hotel.

[Sandy D]

Originally Posted by Greenie

Never been sure if it was because my Da was never at home a lot because of his Naval duties but he always insisted on having a 'home' as a land base.

We all grew up to buy houses early in life as opposed to buying autos.
Has proved to be prudent.

I inherited my maternal Grandmother's house after her daughter passed away.
Some family suggested selling it. I choose to keep it.

There is a wealth of memories there that could never be replaced.

I agree.

Tried to buy my Grandmothers house from one of the Aunts who had control of her estate.

Instead the greedy thing sold it to a developer for a lousy 20,000 more and within a month the home was torn down.

Memories still there, pictures still there but they lived in this house for more then 50 years, raised 11 kids and 100s of grandkids and great grandkids grew up going to this house all of the time.

Greedy people plain suck.

[rsot]

Oh wow - torn down with everything in it..what was your aunt thinking?!?

[ilcarletto]

...greedy people with no family values and memories... people with no heart.
Sorry for yor family house loss.

[autolife]

Originally Posted by Sandy D

LOL---- I have a sales rep I buy New Era items from who just might come in handy.

I'd be interested in sourcing a few items through you if you still have that contact. Pm me if possible.

[Sandy D]

Originally Posted by ilcarletto

...greedy people with no family values and memories... people with no heart.
Sorry for yor family house loss.

Thanks.

We all have those heartless family members who put money first.

[Sandy D]

Originally Posted by autolife

I'd be interested in sourcing a few items through you if you still have that contact. Pm me if possible.

Hmmm

I would not give up my source to create competition for myself.

I purchase large amounts each month and would not want more competition in a category already filled with low balling sellers.