B&M Buyout?

wilbr11

So, The shop owner and I were talking today because I have been thinking about opening a shop if I move to a larger area, and he told me he has been thinking of selling out so he can retire. He's been in business for 20+ years and has a very established clientele and has an average annual gross sales over $200,000+. Seriously thinking about this as I've been wanting to get into the business for a while. Just wanting to Get some feedback from everyone, especially any shop owners out there.

zoom6zoom

Just remember that gross sales don't mean bupkiss. No matter what type of business you are looking at acquiring, when you get serious you need to insist on a full review of the books by a CPA of YOUR choosing. You can have huge grosses with a net loss.

dutyje

wilbr11

Alot of good Info and Input, I really appreciate it. I do know the current shop is in a decent location that I would keep if only for the fact of the space it provides and the DECENT location in town. Rent is insanely low. I'm not sure as far as the negotiation of the lease as it was just small talk today. Next time I go in I plan on getting a bit more detailed with him. He has "Accounts" with most of the major Suppliers, which he said I would of course take over. Alot of the specifics are still very very Gray due to the fact he and I only engaged in small talk about it today. The facilities are in decen condition and I know his daughter does a phenomenal Job of keeping documentation of inventory. I believe the 100% markup is the case. Just curious, and again I'm young in a business mindset, well I'm young period, but How do you see only a 100% markup as a money pit? This will be a slow process if I do it, probably taking 2-3 years but I am a forward thinker and Like to be able to think things thru with a lot of time to toss all the facts around. I know with everyone here's expertise i should get some good food for thought.

dutyje

madurofan