Creative financing in Business Acquisition: Part II
cugelert
subscriber Posts: 7
Hello everyone,
I thought I would try a different catagory on my topic of creative financing towards a business acquisition.
Anyway, I wouldn`t be approaching it from this angle had my wife not passed away suddenly and devastating our savings. So I`m now trying to fulfill our dream and move forward by trying a different strategy of somehow buying the business without using what limited amount I have left at this time. So I invite everyone to do some brainstorming and come up with some strategies on how you might approach this situation using the info below...
1. Owner is asking $375,000.
2. Annual gross is $735,000.
3. Annual net is $200,000.
4. Business estimated value is$410,000.
5. It is free and clear.
6. No real estate (business is on a lease).
7. Owner will take $350,000 cash today.
Well, using these numbers and situation, I`ve been racking my brain trying to come up with a tantilizing offer for the owner and I`m stumped.
Something inside me is saying its possible and its driving me out of my mind. So any of your input would definitely be appreciated... Thank you in advance.
Jerikcugelert2006-9-6 21:8:8
I thought I would try a different catagory on my topic of creative financing towards a business acquisition.
Anyway, I wouldn`t be approaching it from this angle had my wife not passed away suddenly and devastating our savings. So I`m now trying to fulfill our dream and move forward by trying a different strategy of somehow buying the business without using what limited amount I have left at this time. So I invite everyone to do some brainstorming and come up with some strategies on how you might approach this situation using the info below...
1. Owner is asking $375,000.
2. Annual gross is $735,000.
3. Annual net is $200,000.
4. Business estimated value is$410,000.
5. It is free and clear.
6. No real estate (business is on a lease).
7. Owner will take $350,000 cash today.
Well, using these numbers and situation, I`ve been racking my brain trying to come up with a tantilizing offer for the owner and I`m stumped.
Something inside me is saying its possible and its driving me out of my mind. So any of your input would definitely be appreciated... Thank you in advance.
Jerikcugelert2006-9-6 21:8:8
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As for the company, the numbers are fantastic in my industry and unheard of at the price. Its about 6 years old under the current owner but its been operating since the 70`s. He added gaming into the business which quadrupled his ROI. Now he`s burnt out and wants to retire and since its free and clear, he listed it under its current value for a quick sale. And with a net annual of $200,000 I`d say its profitable...
Jerik