frd150 Posted June 21, 2007 Share Posted June 21, 2007 I need some advice on something i concider to be new territory. Hopfully someone here can let me know what to do next. Tonight my boss of 8 years came to me with his intention to make a change in his life. This change includes him selling the buisness. He was very clear in his intention to give me first crack at it since i have been running it for him the last three years. This is where i sit..... A decent sum in the bank and about 150k in equity. There are some outside investor possibilities that i will have to explore but i would like to do this on my own if possible. In the next week or so i will meet with the accountant and possibly an attorney for a little guidence. The buisnesss has a solid 21 year track record,a solid name in our industry,and a great location. It's had it's share of ups and downs but what buisness hasn't. What is my first move? What is in the realm of possibility? If you need more info let me know. Link to post Share on other sites
Tony T Posted June 21, 2007 Share Posted June 21, 2007 Sounds like a GREAT opportunity. PM me and maybe I can help you with this. Your first move is to get the business appraised. Your second move is to get it under contract with 90 days to obtain financing and a period of due diligence when your accountant can pour over the books for the last two or three years. Link to post Share on other sites
Art_Critic Posted June 21, 2007 Share Posted June 21, 2007 If you cannot come up with the capitol you could cut a deal to a buyout with the 150k and do a 7 year buyout that that company pays for monthly.. You own the company full out and cut the check to him each month.. Sometimes this works out great for the tax advantages on his part as he will be on the hook for capitol gains taxes on the buyout amount. Benefits like insurance and cars as well as a seat on the board could be arranged to taper off throughout the buy out 3-5-7 years.. Make sure if you do this type of buyout that you buy life insurance on his life that the company owns and pays for in case of his death you would be asked to come up with the full purchase amount and pay his estate.. Link to post Share on other sites
Topper Posted June 29, 2007 Share Posted June 29, 2007 It is smart of your boss to make you the first offer. Often when a bussiness is sold part of the customer base will disappear since they don't feel any loyalty to the new owner. Since you have been running the business the transaction will be smoother. Does the Company own property or does it lease? If on a lease what are the terms? You really will need an accountant that knows your bussiness. Since you have been running the place you should know what the cash flow is and have some idea if you will be able to cover the debt you will incur. Of course a good accountant will fill you in on all that. You will also find that local accountants and lawyers have investors looking for silent partner opportunities. good luck with everything. Link to post Share on other sites
Author frd150 Posted June 30, 2007 Author Share Posted June 30, 2007 I am gathering some info for you guys. There are some what ifs that need clearing. Topper.... We lease and we are in the process of renewal. We are trying to work on the attached assumption clause. 5 years with a 5 year option I just obtained financials I plan on retaining the accountant we have now. she has offered to help make the transition smooth. I do have some silent partner / invester leads that i am exploring. Link to post Share on other sites
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