Forums: Discussions for entrepreneurs and small business.

How would anyone suggest making an offer on an existing business buyout?  There is a business that is now OFF the market due to the economy - poor year last year so the owners want to build it up again before selling.  What type of strategy would you use to put an offer in front of the current owners to maybe buy one out (husband/wife team) and maybe include an upside for them with growth I might bring ?  (Energy, marketing, sales efforts, to the business)

Buying an existing business is a difficult task even in the best of times.  Normally you would ask to see the last three years tax returns and analize them to see if it warranted any further attention.  Type of business, location and other factors greatly affect selling price.  Also owning the business with one of the present owners might be asking for trouble.  They and the spouse that you bought out might feel as though the business is still theirs to run as they please.  Another question is will you own at least 51%.  If not, forget it.  Why not make them an offer for the whole thing?  Their is an old saying - a partership is the only ship that will not float.  

Good luck with your decision.