Requesting some advice form the forum on the following:
I have found an automobile transport company that has been in business for 27+ years and the owner is ready to move on. I have reviewed the last 5 years tax returns and P&L and the company is pulling a sustained profit of 380K+ each year.
The real estate is conservatively priced @ $550,000. The seller bought & developed this property specifically for this business & spent $684,000 on the acquisition. Recently, the adjacent land, which is very similar, sold for exactly what the seller paid 5 years ago. Regarding the price for the business, the trucks have recently had a certified appraisal by an appraiser recommended by TD Bank for $1,009,000. If you strip the tangible assets of $550,000 (real estate) & ($1,016,650 (trucks & small assets) from the total price of $2,295,000, the intangible value of the business is priced at only $728,350. the owner would be willing to be somewhat flexible on price & terms, and will finance the business with only $600,000 down. If I have him strip out the real estate he would only require 350-400 down and I could lease the land back. I have about a 100K but need to get the rest in order to make this work.
With the information given does this look like a good opportunity? Any ideas on how to ge the rest of the money for the down payment?
Thanks in advance for advice and input.
Join our small community for expert insights, insider tips, and the industry knowledge you need to see your small business grow.Get Started Become A Member
Now that you’re a member of the community, spice up your profile by adding photos, a custom avatar, information about your small busines, and much more.View Profile
There are no recent discussions
Ways to Make Your Search More Accurate
Most of the time, you just want to find content that has a particular phrase. Here are the easiest ways to find the content you want.