Question of taking over a business...
- Thread starter tigerseye
- Start date
Your question is vague - there's no such thing as a "standard payment" in financing deals.
Whatever you do consult with an attorney for a contract to cover all details of the acquisition.
What I meant was what kind of percentage should I expect to pay someone that is financing me 100%?
Best way to get a ballpark is inquire with your local bank as to the rate they are charging for business loans. You can use this info to negotiate terms with the owner.
Don't pay anything. the seller is anxious to get out of the place since he is financing 100%. You make sure you see all of his books and tax returns for the last two-three years. Also, make sure you have an asset purchase and not a stock sale, since you don't want his debt coming with the purchase. The more I'm thinking about it, make sure you hire a NON-pool playing attorney that will look at facts and numbers and not be awe struck that you will be buying a pool hall!
Good luck. Sometimes I miss it.....
Bob
Good luck. Sometimes I miss it.....
Bob
Along with making sure there is clear title to all of the equipment being sold. How anxious the seller is to unload is unknown but if it were me I'd have the seller present his desired selling terms first to set a start point for negotiations.
TurdFerguson
Registered
Is the business a pool room? You mentioned nothing about the liquor license, which will present problems on a rent to buy deal.
I asssume the business is being sold on a rent to buy option, or you would know this sort of information, because you would have checked financing with your bank(s).
So, I would further assume that you don't qualify for normal financing. This means you will probably not opt for funds to do proper lawyering.
Unfortunately, this is a very common instance. Generally the "financing" seller simply sets you up to fail, and then ownership reverts back to him/her, after your efforts and work. Don't forget the seller knows the business, and is getting out.
Be very careful.
I asssume the business is being sold on a rent to buy option, or you would know this sort of information, because you would have checked financing with your bank(s).
So, I would further assume that you don't qualify for normal financing. This means you will probably not opt for funds to do proper lawyering.
Unfortunately, this is a very common instance. Generally the "financing" seller simply sets you up to fail, and then ownership reverts back to him/her, after your efforts and work. Don't forget the seller knows the business, and is getting out.
Be very careful.