Discussion
The opportunity has come up, for me to buy a business.
Its currently owned by my best mates sister,who sadly is dying of cancer.
The business is valued at £155k excluding current stock, but if i want it,i can buy the business now for £100k.
What i am wondering,if i present a business plan,and all the accounts etc,much chance of a business loan in this current climate?
Profit-wise is £2500 upwards per week,which is obviously shown in the books,which go back 7 years.
New to owning businesses,so go easy on me please.
Its currently owned by my best mates sister,who sadly is dying of cancer.
The business is valued at £155k excluding current stock, but if i want it,i can buy the business now for £100k.
What i am wondering,if i present a business plan,and all the accounts etc,much chance of a business loan in this current climate?
Profit-wise is £2500 upwards per week,which is obviously shown in the books,which go back 7 years.
New to owning businesses,so go easy on me please.
no-worries88 said:
The opportunity has come up, for me to buy a business.
Its currently owned by my best mates sister,who sadly is dying of cancer.
The business is valued at £155k excluding current stock, but if i want it,i can buy the business now for £100k.
What i am wondering,if i present a business plan,and all the accounts etc,much chance of a business loan in this current climate?
Profit-wise is £2500 upwards per week,which is obviously shown in the books,which go back 7 years.
New to owning businesses,so go easy on me please.
Gross profit or net profit?Its currently owned by my best mates sister,who sadly is dying of cancer.
The business is valued at £155k excluding current stock, but if i want it,i can buy the business now for £100k.
What i am wondering,if i present a business plan,and all the accounts etc,much chance of a business loan in this current climate?
Profit-wise is £2500 upwards per week,which is obviously shown in the books,which go back 7 years.
New to owning businesses,so go easy on me please.
There is a big difference.
Don't rush into this, a fool and his (banks) money are soon parted.........
http://www.pistonheads.com/gassing/forum.asp?h=0&a...
Can't help myself, but try posting in here - there seems to be a lot of business owners who may be able to help you out.
Can't help myself, but try posting in here - there seems to be a lot of business owners who may be able to help you out.
You might want to think about finding a business partner who is willing to sump up say half the cash - try local chambers of commerce or your local Business Link.
With that sort of return banks should be willing to help, but as said above they may ask for your home as security. I can only strongly suggest you do not put your home at risk - I managed to finance and grow a business without putting our home up as collateral even though the bank kept asking for me to do so - they still gave us a loan and overdraft facility.
I would also strongly suggest you look at current trading in particular - the last few months. Recessions can really hit the restaurant trade and a drop of say only 10% in sales can lead to a much, much bigger drop in profits. Even if people go to restaurants they might now skip starters or not order wine, etc. Be particularly careful with the lease too. All the best anyway.
With that sort of return banks should be willing to help, but as said above they may ask for your home as security. I can only strongly suggest you do not put your home at risk - I managed to finance and grow a business without putting our home up as collateral even though the bank kept asking for me to do so - they still gave us a loan and overdraft facility.
I would also strongly suggest you look at current trading in particular - the last few months. Recessions can really hit the restaurant trade and a drop of say only 10% in sales can lead to a much, much bigger drop in profits. Even if people go to restaurants they might now skip starters or not order wine, etc. Be particularly careful with the lease too. All the best anyway.
Nobody has mentioned - is the (unfortunately) dying woman key to the success of the business?
The profitability will change if you need to get a couple of decent Thai chefs in etc etc
You could also structure the deal in such a way as you pay £50k up front and the other £50 contingent on the revenues being what they project.
The profitability will change if you need to get a couple of decent Thai chefs in etc etc
You could also structure the deal in such a way as you pay £50k up front and the other £50 contingent on the revenues being what they project.
How much due dilligence work have you carried out?
You say the business is valued at £155,0000 - although being offered at £100,000).
How have these figures been aroved at?
Have you seen a number of years' accounts?
What are the most recent accounts prepared?
Are there any impending changes likely to occur in the near future - like lease renewal on the premises, for instance.
Are there any staff issues?
Do you know anything aboutr running a Thai restaurant (or any restaurant or any business for that matter)?
You say the business is valued at £155,0000 - although being offered at £100,000).
How have these figures been aroved at?
Have you seen a number of years' accounts?
What are the most recent accounts prepared?
Are there any impending changes likely to occur in the near future - like lease renewal on the premises, for instance.
Are there any staff issues?
Do you know anything aboutr running a Thai restaurant (or any restaurant or any business for that matter)?
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