I am in the manufacturing business and have 10 years in my field, I
have wanted to open up a shop for awhile now but do not have any
capital and my personal credit is not good.
An opportunity has arisen that is very intriguing and I was hoping I could get some advice.
Heres the deal:
There is a small manufactuing facility that an older owner wants to get
out of an move on, so he is looking for someone young and experienced
to come in and take over/buyout his company... he would stay on for
awhile until he was comfortable that the company would be able to pay
him for the company over the next few years. The company is currently
not in a great position and he is at a point where he needs to sell off
the assets or do this deal - he is totally willing to get it going
again so he can fund his retirement. (the company is not in debt...
just doesnt have alot of business, mostly because he is winding it down)
Obvioulsly I need to do due dilligence and investigate the entire
finanacial situtaion of the company, so my main question is on how best
to set up the buyout agreement... the max he wants to be with the
company is 2 years. Is a leverage buyout the way to go? He owns all of
the equipment and has some receiveables.
Also - the company is a 30 year old corporation, the name doesnt carry
a ton of weight so I will be changing it.. should I just start a new
corp or llc? or inherit the current corp? I wouldnt want to be liable
for anything prior my arrival.
To start a manufacturing company of this type would require at least
500k so me starting one on my own is currently very far from reality..
this is a unique opportunity where I can purchase a company without
having to put any money down, and have owner assit in setting it up to
be profitable and successful.
So - can you guys give me some adivce? please ask additional questions if needed [http://smallbusinessonlinecommunity.bankofamerica.com/images/emoticons/happy.gif]
and remember I am specifically looking for advice on how to go about
buying out and transferring ownership in this situation. I need it to
be very secure for me and also need to minimize his risk.
Thanks!
have wanted to open up a shop for awhile now but do not have any
capital and my personal credit is not good.
An opportunity has arisen that is very intriguing and I was hoping I could get some advice.
Heres the deal:
There is a small manufactuing facility that an older owner wants to get
out of an move on, so he is looking for someone young and experienced
to come in and take over/buyout his company... he would stay on for
awhile until he was comfortable that the company would be able to pay
him for the company over the next few years. The company is currently
not in a great position and he is at a point where he needs to sell off
the assets or do this deal - he is totally willing to get it going
again so he can fund his retirement. (the company is not in debt...
just doesnt have alot of business, mostly because he is winding it down)
Obvioulsly I need to do due dilligence and investigate the entire
finanacial situtaion of the company, so my main question is on how best
to set up the buyout agreement... the max he wants to be with the
company is 2 years. Is a leverage buyout the way to go? He owns all of
the equipment and has some receiveables.
Also - the company is a 30 year old corporation, the name doesnt carry
a ton of weight so I will be changing it.. should I just start a new
corp or llc? or inherit the current corp? I wouldnt want to be liable
for anything prior my arrival.
To start a manufacturing company of this type would require at least
500k so me starting one on my own is currently very far from reality..
this is a unique opportunity where I can purchase a company without
having to put any money down, and have owner assit in setting it up to
be profitable and successful.
So - can you guys give me some adivce? please ask additional questions if needed [http://smallbusinessonlinecommunity.bankofamerica.com/images/emoticons/happy.gif]
and remember I am specifically looking for advice on how to go about
buying out and transferring ownership in this situation. I need it to
be very secure for me and also need to minimize his risk.
Thanks!
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