- Joined
- Oct 24, 2007
- Messages
- 2,289
I have recently come across a business opportunity where the current owners want out and want $$ and the only person they seem to want to sell it to is one of their current employees who happens to be a friend of mine.
These people have been in business for a while and have been good tenants in their commercial lease space - their landlord has offered them a *really* low monthly lease rate for basically as long as they want to sign up for.
My friend is a great employee and manager but doesn`t have the business acumen or the passion to run things top to bottom and has asked for my partner and I to help him buy the biz. He doesn`t have cash and doesn`t want to lose his job if the owners fold.
This is a very small business right now but I think it`s got great upside because it has very low costs, a good sized market and very little competion. Also, as a service business in fort mac having a committed manager in place helps a lot.
The draw would definitely be its cash flow and low entry costs & carrying costs. All of which seem quite good so far.
Anyway - my partner and I have strengths in marketing and also business planning. I can`t help but think that I could package this business up as an investment and then sell it off to a bigger business here in Calgary or Edmonton that is looking to expand up north and bring their business systems and passion to bear on a fresh market.
Anyone ever done something like this? Is it common? When people are buying a small business is there a specific metric they use?
These people have been in business for a while and have been good tenants in their commercial lease space - their landlord has offered them a *really* low monthly lease rate for basically as long as they want to sign up for.
My friend is a great employee and manager but doesn`t have the business acumen or the passion to run things top to bottom and has asked for my partner and I to help him buy the biz. He doesn`t have cash and doesn`t want to lose his job if the owners fold.
This is a very small business right now but I think it`s got great upside because it has very low costs, a good sized market and very little competion. Also, as a service business in fort mac having a committed manager in place helps a lot.
The draw would definitely be its cash flow and low entry costs & carrying costs. All of which seem quite good so far.
Anyway - my partner and I have strengths in marketing and also business planning. I can`t help but think that I could package this business up as an investment and then sell it off to a bigger business here in Calgary or Edmonton that is looking to expand up north and bring their business systems and passion to bear on a fresh market.
Anyone ever done something like this? Is it common? When people are buying a small business is there a specific metric they use?