Buying a business.......
Discussion
Asking the owner if he want to sell is a good start!
That was a serious answer. You may be catching someone at the right time, they want to retire, invest in something else etc. The way that tax rules work, by making them a decent offer they may end up with what they could expect as a salary/dividend maybe 8 or 10 years payment after deductions.
Give it a try!
That was a serious answer. You may be catching someone at the right time, they want to retire, invest in something else etc. The way that tax rules work, by making them a decent offer they may end up with what they could expect as a salary/dividend maybe 8 or 10 years payment after deductions.
Give it a try!
Yep, thought as much - just ask.
However, there is a danger that showing an interest will immediately raise the price? Fact of life, or any tips how to mitigate this?
Follow on questions then; how do you go about a) putting a realistic valuation on a business? and b) ensuring enough information is disclosed during due diligence?
However, there is a danger that showing an interest will immediately raise the price? Fact of life, or any tips how to mitigate this?
Follow on questions then; how do you go about a) putting a realistic valuation on a business? and b) ensuring enough information is disclosed during due diligence?
Yup assuming it's not a PLC you can do nothing really beyond asking the owner.
Obviously it pays to do as much research before hand. Getting all publicly available records from Companies House is a good start and will give you an insight into who the directors and shareholders are along with their addresses.
If they have a brain they'll be cagey, you could have ulterior motives after all. If they are open to the idea then perhaps offer to pay for an NDA to be drawn up (basic ones don't cost much)
Once you've both happy with each other then it's just as any other business purchase really.
Obviously it pays to do as much research before hand. Getting all publicly available records from Companies House is a good start and will give you an insight into who the directors and shareholders are along with their addresses.
If they have a brain they'll be cagey, you could have ulterior motives after all. If they are open to the idea then perhaps offer to pay for an NDA to be drawn up (basic ones don't cost much)
Once you've both happy with each other then it's just as any other business purchase really.
Route324 said:
However, there is a danger that showing an interest will immediately raise the price? Fact of life, or any tips how to mitigate this?
Well if it wasn't for sale there wouldn't be a price on it to raise 
I know what you mean though and it's just one of those things really, you could also end up waiting forever for the opertunity to arise.
So long as you're pragmatic when setting a purchase price in your head and stick to it you'll be fine. If they want silly money just turn it down, your in the same position as you would have been anyway.
from time to time we write to some of our competitors to see if they are looking to sell up now or if in the future to keep us in mind.
Its paid off on 2 occasions but we are talking about small partnership firms. It has to be to the boss and would suggest you send it recorded so its hopefully not opened by others.
Its paid off on 2 occasions but we are talking about small partnership firms. It has to be to the boss and would suggest you send it recorded so its hopefully not opened by others.
If its a competitor, then pally up with a good recruitment business and go actively after their key staff (sales force would be a good start) - then you either take their business, or damage it to the extent that it comes up for sale anyway. This tactic isnt without its risks, but can be very effective if implemented properly. Email me if you are interested in discussing further.
Mosi said:
If its a competitor, then pally up with a good recruitment business and go actively after their key staff (sales force would be a good start) - then you either take their business, or damage it to the extent that it comes up for sale anyway. This tactic isnt without its risks, but can be very effective if implemented properly. Email me if you are interested in discussing further.
As evil as you sound, I could be interested myself!Talk to the target company's competitors. Following which, talk to the target company, letting them know you're talking to their major competitors. This, in turn, puts you in the position of (1) choice; and (2) the potential threat of being a more powerful competitor. Both of which put you in a strong negotiating position.
Mosi said:
If its a competitor, then pally up with a good recruitment business and go actively after their key staff (sales force would be a good start) - then you either take their business, or damage it to the extent that it comes up for sale anyway. This tactic isnt without its risks, but can be very effective if implemented properly. Email me if you are interested in discussing further.
Mosi, - that’s rather evil 
– but strangely I like your thinking 
srebbe64 said:
Talk to the target company's competitors. Following which, talk to the target company, letting them know you're talking to their major competitors. This, in turn, puts you in the position of (1) choice; and (2) the potential threat of being a more powerful competitor. Both of which put you in a strong negotiating position.
srebbe64 – thanks, this is exactly the sort of strategy nugget I was hoping would turn up, cheers. 
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