I represent clients in business acquisitions. I would be interested in taking a look at your business plan and reviewing the figures, etc. If you want assistance from a professional source in these acquisitions, you can contact me at the e-mail address listed in my profile.
It doesn't matter what they are grossing - and you don't want to PAY for what it could be - or "should" be - you pay the owner for what they've made it. If the banker sees this, and probably does, you telegraph your knowledge level. LISTEN to the banker - you wouldn't pay 120% for a house today - don't do it for a business. The business is worth the cash flows - or profitability. At less than $500,000, their multiple will be fairly low.
Learn what cash flows are worth and buy your competitors right. Let them hold some of the risk - as you oare depending on what they say and from the sounds, you might not be well equipped to verify well. If they are holding risk - they will help - they will be less likely to misguide. If you cash them out - they've got nothing to lose.
Show the banker you KNOW there are many ways to skin a cat - that you are flexible. And I'll bet after he sees those actions and you make a good case - you could get him to go up - IF YOU EVEN NEED him to go up by then. His business is risk - he understands it - learn from him, don't treat him as an advesary and you'll get much farther with him.
Hi voreal! You have gotten some really good answers so far! I am interested in learning more about your business and am awaiting the outcome of your situation. Please do let us know how things progress and what results worked for you. It would definitely be helpful to others who come to the community with situations similar to yours!
Best of luck to you as you find your way to cornering the scooter and rental market in your area!
Hello i have been in the tourist market for over 5 years now. i do scooter and bike rentals here. i am trying to buy out two business competitors in the market my boss and a another. problem is is that for both it would cost close to 300,000 my lender want to only spend 90,000 even know i tell him thru experience and the business plan numbers for just a third of what we would get we would gross over 500,000 a year together both business and the like i estimate alot more if done right and a slow cornering of the market. question is even know i know the business the numbers and the such try to stay small ? buy out is the only method start up is impossible right now. there is a Moratorium! so no other people can come in to give competition. ???? looking on advice i can not contribute with the loan i just know all the business running and aspects of it as well as all the ways to make money doing it. should i try to find another avenue wait for the possible lifting of the Moratorium? take this chance and go big?