Forums: Discussions for entrepreneurs and small business.

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.

Jerik

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Cu Gelert - The Legend ... If you`d like to know the value of money, go and borrow some... It is especially hard to work for money that you`ve already spent, on things that you never needed... Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it!

Hi Jerik,
How long has the company been in business? And has it been profitable each year...or showing steady growth?
Is it possible for you to have someone go into business with you, who could provide capital injection of 25%? If the credit is favorable (above 660) loan financing is an option to explore.



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lisa@theideaanalyst.com

Thanks for the input Lisa...

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

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Cu Gelert - The Legend ... If you`d like to know the value of money, go and borrow some... It is especially hard to work for money that you`ve already spent, on things that you never needed... Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it!