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Looking for business purchase advice?


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Hey guys and gals,

I am in the middle of putting together an offer for the purchase of an existing shop. As you can imagine there are a lot of things and variables to consider. I was hoping to get some feedback on things people they wish they had done differently or suggestions in regards to buying a business, structuring the sale etc. For instance did you purchase the business and the real estate? Was it an asset sale or stock sale? Anyone advice on how to get a group of guys that have worked at the same place for 20 years on board with your style of leadership and plan for the future? The shop I am interested in has a good reputation in the community but also everyone is pretty close to retirement age.

 

Thanks ahead of time for advice.

Edited by Sean
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Hi Sean -

 

I was involved with collision shop take overs while involved with a conversion franchise company and really open my eyes to knowing your numbers and knowing when to bring the experts in to confirm what you know. There's no crime in staying "I don't understand" or "That doesn't make sense"

 

With regards to existing staff - "Process does NOT drive people - People drive process - therein lies the challenge" the folks staying on need to be convinced to be on board and would find it hard to believe if you were to have a heart to heart with the soon to be former owner - half the is the reason for the sale was staff wanting there work environment to be what they wanted it to be and not the bosses and the other half haven't a clue or don't care.

 

Think CPA! Think an outside CPA strictly numbers not personal.

 

Good Luck Jim

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  • 3 months later...

Numbers numbers numbers. If the numbers work and you are going to have the right people it's a win win. If either of those are in question then I'd reconsider. It's really hard when you get tunnel vision and don't deluxe you're buying something that is losing money then have to try and then turn it around.

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      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
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