Buying a flailing company
Discussion
Have the opportunity to purchase a company currently struggling.
The said company has undisputed debtors (who are definately going to go bankrupt) of £22000. The company currently owes suppliers £15000.
The 2 current directors are burying thier heads as the debtors are refusing to pay & the suppliers are chasing quite hard.
The company itself was very profitable 12 months ago but has struggled in the last few months due to downturn in work (landscapers for major builders).
The directors would be willing to sign over 75% of the company & take a basic wage (possibly on a labour only basis), an monies earn over & above would be profit split between ourselves & themselves.
I essence the company could be purchased for free & we would then pursue the debt. In the meantime we would speak to the suppliers owed money & make them aware of the situation, ie that unless they would defer payment for 3 to 6 months that they would want away without a single penny due to the impending bankrupcy. However if they would defer the payment then they would recieve it in full (an we would/could provide personal guarantees to back this up).
?
The said company has undisputed debtors (who are definately going to go bankrupt) of £22000. The company currently owes suppliers £15000.
The 2 current directors are burying thier heads as the debtors are refusing to pay & the suppliers are chasing quite hard.
The company itself was very profitable 12 months ago but has struggled in the last few months due to downturn in work (landscapers for major builders).
The directors would be willing to sign over 75% of the company & take a basic wage (possibly on a labour only basis), an monies earn over & above would be profit split between ourselves & themselves.
I essence the company could be purchased for free & we would then pursue the debt. In the meantime we would speak to the suppliers owed money & make them aware of the situation, ie that unless they would defer payment for 3 to 6 months that they would want away without a single penny due to the impending bankrupcy. However if they would defer the payment then they would recieve it in full (an we would/could provide personal guarantees to back this up).
?
Hobo said:
Have the opportunity to purchase a company currently struggling.
The said company has undisputed debtors (who are definately going to go bankrupt) of £22000. The company currently owes suppliers £15000.
The 2 current directors are burying thier heads as the debtors are refusing to pay & the suppliers are chasing quite hard.
The company itself was very profitable 12 months ago but has struggled in the last few months due to downturn in work (landscapers for major builders).
The directors would be willing to sign over 75% of the company & take a basic wage (possibly on a labour only basis), an monies earn over & above would be profit split between ourselves & themselves.
I essence the company could be purchased for free & we would then pursue the debt. In the meantime we would speak to the suppliers owed money & make them aware of the situation, ie that unless they would defer payment for 3 to 6 months that they would want away without a single penny due to the impending bankrupcy. However if they would defer the payment then they would recieve it in full (an we would/could provide personal guarantees to back this up).
?
Do you not think the downturn in work will continue?!?!!!!!The said company has undisputed debtors (who are definately going to go bankrupt) of £22000. The company currently owes suppliers £15000.
The 2 current directors are burying thier heads as the debtors are refusing to pay & the suppliers are chasing quite hard.
The company itself was very profitable 12 months ago but has struggled in the last few months due to downturn in work (landscapers for major builders).
The directors would be willing to sign over 75% of the company & take a basic wage (possibly on a labour only basis), an monies earn over & above would be profit split between ourselves & themselves.
I essence the company could be purchased for free & we would then pursue the debt. In the meantime we would speak to the suppliers owed money & make them aware of the situation, ie that unless they would defer payment for 3 to 6 months that they would want away without a single penny due to the impending bankrupcy. However if they would defer the payment then they would recieve it in full (an we would/could provide personal guarantees to back this up).
?
Ie major recession ahead.
bargepole
B
BJWoods said:
Hobo said:
Have the opportunity to purchase a company currently struggling.
The said company has undisputed debtors (who are definately going to go bankrupt) of £22000. The company currently owes suppliers £15000.
The 2 current directors are burying thier heads as the debtors are refusing to pay & the suppliers are chasing quite hard.
The company itself was very profitable 12 months ago but has struggled in the last few months due to downturn in work (landscapers for major builders).
The directors would be willing to sign over 75% of the company & take a basic wage (possibly on a labour only basis), an monies earn over & above would be profit split between ourselves & themselves.
I essence the company could be purchased for free & we would then pursue the debt. In the meantime we would speak to the suppliers owed money & make them aware of the situation, ie that unless they would defer payment for 3 to 6 months that they would want away without a single penny due to the impending bankrupcy. However if they would defer the payment then they would recieve it in full (an we would/could provide personal guarantees to back this up).
?
Do you not think the downturn in work will continue?!?!!!!!The said company has undisputed debtors (who are definately going to go bankrupt) of £22000. The company currently owes suppliers £15000.
The 2 current directors are burying thier heads as the debtors are refusing to pay & the suppliers are chasing quite hard.
The company itself was very profitable 12 months ago but has struggled in the last few months due to downturn in work (landscapers for major builders).
The directors would be willing to sign over 75% of the company & take a basic wage (possibly on a labour only basis), an monies earn over & above would be profit split between ourselves & themselves.
I essence the company could be purchased for free & we would then pursue the debt. In the meantime we would speak to the suppliers owed money & make them aware of the situation, ie that unless they would defer payment for 3 to 6 months that they would want away without a single penny due to the impending bankrupcy. However if they would defer the payment then they would recieve it in full (an we would/could provide personal guarantees to back this up).
?
Ie major recession ahead.
bargepole
B
So when the work dries up they find a chump to take on 75% of the company and give them work on labour only?
So, if business dries up further you lose out completely.
If the business is profitable again and there is an economic upturn, they bugger off and start their own company again!
No-one in the developing market or the private market is going to lay down money for landscaping at the moment. Run.
So, if business dries up further you lose out completely.
If the business is profitable again and there is an economic upturn, they bugger off and start their own company again!
No-one in the developing market or the private market is going to lay down money for landscaping at the moment. Run.
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