re: How do you tell someone their business asking price is too high?

Well, it sounds like you might be in a great place. Like a house, don't let a few hundred bucks destroy the deal. $25,000 is another story.

Do you really think a non compete would hold up in that practice?

I would try your best to come to an agreement that is fair for both sides but I wouldn't overpay just b/c she is familiar with that office.

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I wish it was that low, more like a few hundred thousand.

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that doesn't sound very promising

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I wish it was that low, more like a few hundred thousand.

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Open up her own shop. That is lunacy.

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I wish it was that low, more like a few hundred thousand.

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Wow, I don't think you will bridge that gap over dinner.

Have you asked him to show what he is basing the value on? Is he using some sort of billing multiplier? Cash flow? Pulled out of his backside?

what's the terms of the non-compete? Those are hard to enforce in Louisiana.

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I wish it was that low, more like a few hundred thousand.

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I was in the same position as you 7 years ago.
I bought a well established business from my 85 year old grandfather. His value of the business was $550k more than what I thought. Long story short - I paid his asking price, brought it under my ownership and had increased revenue 80% in just under 5 years.

In my different business ventures, I have found that dealing with an older male is incredibly difficult in cases where they have started/built the business.

All 3 of you know the true value of this business - probably somewhere in the middle - (he's overvaluing and you're undervaluing). Most importantly to me, IF you know that the business can be greatly increased (cash flow wise) - BUY IT - and don't look back. If not, completely walk away from the deal and do things your way. Good luck!

Without reading any posts, you're last statement is all you need. He will come to his sense eventually

I was intrigued enough about a vet having a non compete and did some quick Google-ing.

Take it, FWIW.

LINK

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Texas prohibits non-competition agreements when part of an at-will employment agreement.

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A Texas Court of Appeals case held that an employment agreement that prohibited a veterinarian from competing within 12-miles was unenforceable.

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Thx for that.

The owner asked today what the valuation was that we received and he was none to happy as expected. She didn't get into too much with him but offered to show him the official valuation once we received it. We'll just let him stew on it for a little while and see if he brings it back up. He wants to sell and we want to buy, but aren't going to sell out our future stability for him or anyone.

Frick healing cows at the expense of my physical person.

A dead bovine is simply just an invitation for Dinner.

You are a better man than me.