Buying a job?

[DUMBO100]

Buy in at the current value and then double the turnover when he retires

[RobinOakapple]

DUMBO100 said:

Buy in at the current value and then double the turnover when he retires

Double the turnover?

I don't think so.

Too easy to manipulate- lower prices = higher turnover but lower profit.

[dave123456]

as others say, do your due diligence.

and given what he's offering, check out what baggage he's carrying.... young thai bride? lazy kids? all liabilities for that 50% he's promised you further down the line.... obviously you'll get a professional valuation at that point but if vultures are circling it can protract and sour the process.

[Du1point8]

dave123456 said:

as others say, do your due diligence.

and given what he's offering, check out what baggage he's carrying.... young thai bride? lazy kids? all liabilities for that 50% he's promised you further down the line.... obviously you'll get a professional valuation at that point but if vultures are circling it can protract and sour the process.

I would look at something like the following.

Look at the price of the company now... Say its £100k, it 'can' be turned into a £200k company if lots of hard work is done, since OP states he can turn it into that...

Sort out an arrangement that 50% of the state is paid now, so make that £50k.

Then say that OP will pay 50% on top of the current pricing for the other half regardless of what happens to buy business partner out.

So you lock in the price of the remaining 50% stake at £75k.

If the company ends up turning more of a profit before Business partner wants buying out then he loses out but it was an educated risk, if it makes less of a profit, then business partner ends up winning as the forecast was not as good as suggested.

It would need to be set in stone and if OP sees that he is going to massively win at the end of it, there is nothing to stop OP paying more for the final stake if wanted, but it also means that OP can't simply back out and walk away if the contract is signed and OP sees that its not as good as OP hoped.