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Buying a small business
Posted on 6/29/14 at 4:27 pm
Posted on 6/29/14 at 4:27 pm
We are in the very preliminary stages (gathering information) of buying the business where my wife works. This will be our first venture into small business and would like to get some helpful general tips for starting out.
Posted on 6/29/14 at 4:35 pm to LSUSUPERSTAR
I'll sell you mine for the right price.
Posted on 6/29/14 at 4:39 pm to LSUSUPERSTAR
There's a good chance it will end in at least one lawsuit between you and the former owner. I've never been involved in one that didn't.
Posted on 6/29/14 at 4:49 pm to VABuckeye
Yellowfin you are a downer man
Posted on 6/29/14 at 5:07 pm to LSUSUPERSTAR
Have a good lawyer, and have a good accountant.
Posted on 6/29/14 at 5:28 pm to LSUSUPERSTAR
Tell us a little something? Kind of biz. Do you have to get a non compete against the current owner? Etc. Give us some background? You gonna work there or let your wife run it?
Posted on 6/29/14 at 5:43 pm to GeeOH
Older veterinarian retiring, wife is a vet that works for him and has been running the show mostly since starting two years ago with the intention of buying from the start. I won't work there in a paid standpoint but will be involved. We are gathering info on the steps we need to take such as hiring an attorney, cpa, forming an LLC, etc.
Posted on 6/29/14 at 5:57 pm to LSUSUPERSTAR
Have you ran a small business? If not, you might consider getting a bit of training. Non profit economic development companies offer that kind of training.
Posted on 6/29/14 at 6:04 pm to kywildcatfanone
Thx. I will look into that.
Posted on 6/29/14 at 6:09 pm to LSUSUPERSTAR
quote:
Older veterinarian retiring, wife is a vet that works for him and has been running the show mostly since starting two years ago with the intention of buying from the start. I won't work there in a paid standpoint but will be involved. We are gathering info on the steps we need to take such as hiring an attorney, cpa, forming an LLC, etc.
This is 101, but make sure he has a customer list written down somewhere.
Posted on 6/29/14 at 6:11 pm to Jcorye1
They have electronic record keeping of customers and pet history.
Posted on 6/29/14 at 7:06 pm to LSUSUPERSTAR
quote:
Why is that?
Because there is always something the former owner doesn't disclose. Mostly unpaid debt that you take on as the new owner.
Posted on 6/29/14 at 7:10 pm to stout
Would there be a way to do a search for debts against the clinic/business?
Posted on 6/29/14 at 7:29 pm to LSUSUPERSTAR
quote:
Older veterinarian retiring, wife is a vet that works for him and has been running the show mostly since starting two years ago with the intention of buying from the start. I won't work there in a paid standpoint but will be involved. We are gathering info on the steps we need to take such as hiring an attorney, cpa, forming an LLC, etc.
This is could be a very good business.
Don't let this get too complicated would be my advice. Buy the assets and location not the corporation. Let him keep the corporation and any debt or liabilities it has.
Buy the equipment for what it is worth--he may want to finance it for you.
Keep the location for the time being so you can capture his clients.
Don't pay for too much "blue sky". I would try to work the blue sky--value above assets--so that you give him a percentage of the business's billings for a little while.
Let him keep any receivables he has.
Do they have any hazardous materials that might create a cleanup problem on the land?? If so find out now. Ask for a "phase 1"envirnomental audit. There are people around Baton Rouge that do such things. If the Phase 1 turns up anything you need a phase 2.
Interview the attorney and the accountants you want to use. Ask them if they have ever done much with business sales--especially sales of professional practices. If they haven't hire someone else.
This post was edited on 6/29/14 at 7:31 pm
Posted on 6/29/14 at 8:22 pm to I B Freeman
Pay someone to come in and appraise the business. Their number will probably come in a lot lower than what the present owner is asking.
Posted on 6/29/14 at 9:29 pm to LSUSUPERSTAR
Lots of things to look at, but at the end of the day it has to work for both of you, find out what is important to each other and work from there. Try to work out a way for him to stay on in some capacity for the short term. Does he own the property? Maybe rent from him with an option to buy?
I went through a very similar deal about 13 years ago, bought a professional services business from a retiring / disabled owner, fortunately my father was a CPA and brokered a very unique deal that was able to accomplish goals of both parties. It has worked out well for both.
I went through a very similar deal about 13 years ago, bought a professional services business from a retiring / disabled owner, fortunately my father was a CPA and brokered a very unique deal that was able to accomplish goals of both parties. It has worked out well for both.
Posted on 6/29/14 at 9:42 pm to Tigerpaw123
I looked up the appraisal for the property and he is the owner. As for him staying on, I think he is ready to hang it up but that is something to discuss with him.
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