business sold?

[southerndetail]

So I think I might have my business sold, I had a 2 hour long meeting with a couple from south Africa Friday. They are moving here and in the process of getting there visa's, they are both in agreement that they need a business that will start generating income immediately. I ensured them both that there isn't a better way to start making cash right away.
They have owned a car wash in the past and sound like they have the same passion as me. Its not that I wouldn't have sold the business to some one that didn't have the same passion as me, but it makes me feel good that they do. Down side is that they want me to stay on for 3 months.

[Luster]

Originally Posted by southerndetail

Down side is that they want me to stay on for 3 months.

I said 3 months ago, that I was going to retire in 3 months...

It's seems like it's only been a couple weeks!!!!!

This Thursday's my last day.

It will go FAST!!!!!

Congrats!


P.S..............Are you retiring???

[southerndetail]

No I am not retiring, I am moving north. I am still a spring chicken and only started making a name for myself. Although it will only be part-time to start, I will be inventing and marketing a few detailing ideas with the $ from the sale. I believe detailing will always a place in my life.

[Luster]

Originally Posted by southerndetail

I believe detailing will always a place in my life.

Definitely! I've been doing it for over 30 years and, as long as I am able to walk... I'll be detailing!

Good luck with your new venture!

[ArmstrongDetailing]

Good for you. Sounds like it should work out if they are enthusiastic and everyone's realistic with their expectations.

[RANDAL]

Make sure all the money gets into your account for final settlement. I get all those so and so died and theres this money available for the heirs. Maybe you dont need to worry but you probably know these people less than you know me.

[Bunky]

Originally Posted by southerndetail

So I think I might have my business sold, I had a 2 hour long meeting with a couple from south Africa Friday.

You would think with the economy someone more local would want to take over the business if it was an instant revenue source.

But, sounds like good news, if you can live with their terms.

[Beemerboy]

Originally Posted by RANDAL

Make sure all the money gets into your account for final settlement. I get all those so and so died and theres this money available for the heirs. Maybe you dont need to worry but you probably know these people less than you know me.

I concur...get a lawyer involved in the transaction its money well spent...just to make sure all the I's and T's are in place..as for retaining you for a few months...that's very common..they want to make sure that there is a seamless transition from you to them, and they can hold onto your customer base...that's what they are buying after all!

[ArmstrongDetailing]

Originally Posted by Bunky

You would think with the economy someone more local would want to take over the business if it was an instant revenue source.

But, sounds like good news, if you can live with their terms.

If anyone local has money they aren't going to spend it buying a detail business.

A lot of times businesses are bought to give foreigners VISAs to stay in this country. I bet that's a big reason why they are buying it.

[southerndetail]

I don't want to get to excited, but if this falls through I have a line on a pretty reputable detail shop in the area that may be interested. There are still many more months ahead of us.

[Pander5]

Good luck with whatever turns out for you.

[BenzDetailer]

How does one arrive at a price for a detail business? Is it a multiplier of Net Profit plus any current assets. I always wonder why people buy service businesses when they can start there own from scratch. Make sure that you treat the business as one sale and get a lawyer so that it is secured by a personal note tied to real assets. Then have them pay you a WEEKLY Salary as a business consultant and sign a 3 month contract. These must be treated as two totally unique transactions not tied to one another. This strategy will protect you from problems which are too numerous to list here. Do not disclose too much information until all the money has changed hands at closing. Be very cautious with this kind of sale as there are a number of factors that can sabotage this. And finally and I hope this goes without saying. NEVER EVER NEVER EVER NEVER hold the note on this kind of transaction. If they can't pay cash or secure there own financing they are not viable buyers!

I would expect payment in full. (at time of biz license/insurance transfer.)there is no telling how far someone could ruin your good name in your absence. as far as them wanting you to stay 3 months, I feel that is very reasonable if I were them I would do it no other way.(Iwould want 6 months) you have to formally introduce them to your clientle and assure your clients all is good. good luck with your future developments.