business investment advice
Discussion
Hi just wondering if any of you business boffins can help. I have just been offered an oppurtunity to go 50/50 in a coach hire business owned by an associate. The main reason why this individual has approached is due to having previous business dealings with me but on a smaller scale and also due to not ever having a problem with my company.
Now the guy has offered me a 50% stake in his small run coach hire business comprimising of 4 coaches to the value of a 130k. The business last year alone took in 120k out of which 80k was profit, Now the person is wanting me to put 65k into the business to have a 50% stake.
What would you do??
Now the guy has offered me a 50% stake in his small run coach hire business comprimising of 4 coaches to the value of a 130k. The business last year alone took in 120k out of which 80k was profit, Now the person is wanting me to put 65k into the business to have a 50% stake.
What would you do??
silverfox1060 said:
Hi just wondering if any of you business boffins can help. I have just been offered an oppurtunity to go 50/50 in a coach hire business owned by an associate. The main reason why this individual has approached is due to having previous business dealings with me but on a smaller scale and also due to not ever having a problem with my company.
Now the guy has offered me a 50% stake in his small run coach hire business comprimising of 4 coaches to the value of a 130k. The business last year alone took in 120k out of which 80k was profit, Now the person is wanting me to put 65k into the business to have a 50% stake.
What would you do??
Due Diligence.Now the guy has offered me a 50% stake in his small run coach hire business comprimising of 4 coaches to the value of a 130k. The business last year alone took in 120k out of which 80k was profit, Now the person is wanting me to put 65k into the business to have a 50% stake.
What would you do??
Perhaps he wants some added funding so that he can purchase more vehicles etc. and grow the business, but at the same time needed/wanted to take some money out (i.e. to pay off mortgages etc). there are often good reasons for profitable businesses seeking investment.
ETA: If he is based in West Yorkshire and looking for investment I have a client who might be interested if you decide not to go ahead. PM me if I can be of any help.
Edited by therealpigdog on Wednesday 14th January 09:29
silverfox1060 said:
Hi just wondering if any of you business boffins can help. I have just been offered an oppurtunity to go 50/50 in a coach hire business owned by an associate. The main reason why this individual has approached is due to having previous business dealings with me but on a smaller scale and also due to not ever having a problem with my company.
Now the guy has offered me a 50% stake in his small run coach hire business comprimising of 4 coaches to the value of a 130k. The business last year alone took in 120k out of which 80k was profit, Now the person is wanting me to put 65k into the business to have a 50% stake.
What would you do??
When you say he made £80k profit is that before or after he's paid himself a salary? If it's before then I would say the company's breaking even - and it looks like it is because his total turnover is just £120k and he must have other overheads and operating expenses. Now the guy has offered me a 50% stake in his small run coach hire business comprimising of 4 coaches to the value of a 130k. The business last year alone took in 120k out of which 80k was profit, Now the person is wanting me to put 65k into the business to have a 50% stake.
What would you do??
You say he's got assets of £130k. However, it's 'net assets' which are important - does he have any loans or debts?
My advice - proceed with caution (amber light)!
Edited by srebbe64 on Wednesday 14th January 23:20
Gassing Station | Business | Top of Page | What's New | My Stuff