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I am curious if anyone has tried something like this where you buy out a business owner who is a 1099 distributor for an advertising company that sells specialty items/business gifts.
Also very curious what you think for this kind of niche what net cashflow multiple would be reasonable to pay? Or is this just a horrible idea
The reason I am asking about this is I recently ran into someone looking to sell their business after doing it for 28 years. He claims to have achieved success but it just doesn't seem like he is executing on something that fits the fastlane model. The guy after 28 years is still calling on customers directly - no sales force or employees. It just seems like a job more than a business.
There could be some kind of opportunity to acquire the business and modernize it but being that he has developed relationships for 28 years it makes me wonder if his customers are even receptive to working with a successor.
MJ talks a-lot about short cuts. I am not thinking the acquisition gives me any short cuts except I would potentially have a cash flowing business from day one. To me that seems desirable to have that cashflow on day one. The downside is the acquisition cost is has considerably more upfront cost than trying to take an idea to market.
Any thoughts on this approach? Perhaps it is good but not for this kind of business?
Edit 2022-10-31
I met with the owner today. They are selling basically the customer list and guidance for first 90 days. The companies they have worked with in the past are local institutions and businesses in roughly 5 zip codes.
Also very curious what you think for this kind of niche what net cashflow multiple would be reasonable to pay? Or is this just a horrible idea
The reason I am asking about this is I recently ran into someone looking to sell their business after doing it for 28 years. He claims to have achieved success but it just doesn't seem like he is executing on something that fits the fastlane model. The guy after 28 years is still calling on customers directly - no sales force or employees. It just seems like a job more than a business.
There could be some kind of opportunity to acquire the business and modernize it but being that he has developed relationships for 28 years it makes me wonder if his customers are even receptive to working with a successor.
MJ talks a-lot about short cuts. I am not thinking the acquisition gives me any short cuts except I would potentially have a cash flowing business from day one. To me that seems desirable to have that cashflow on day one. The downside is the acquisition cost is has considerably more upfront cost than trying to take an idea to market.
Any thoughts on this approach? Perhaps it is good but not for this kind of business?
Edit 2022-10-31
I met with the owner today. They are selling basically the customer list and guidance for first 90 days. The companies they have worked with in the past are local institutions and businesses in roughly 5 zip codes.
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