Advice on a business acquisition and future development

[Hurley32533]

Fastlaners, I'm currently in the due diligence stage of purchasing a parking lot company here in Florida. The purpose of creating this thread is to chronicle the journey along with all successes and failures. In the spirit of full disclosure please forgive my horrible spelling and punctuation. As we all know this forum is a goldmine of information and resources for those willing to execute. Along with being able to share this experience with the community I'm also selfishly looking to tap into the vast wisdom of successful forum members for ideas and advice.

Okay for a quick business snapshot! The company has been around for 30 years and the current owner has had the business for the past 13 years and is 70 and looking to retire. This company has 5 employees that operate sweeper trucks on commercial parking lots at night over a three county area. The business grosses $360,000 a year and nets $110,000 through 1-3 year contracts with commercial companies and other big box retailers. The employees are long term and have been employed at the business on average 8 years. The owners present duties include management, bookkeeping, payroll, customer relations and ensuring the mechanic keeps the sweepers in good working order. The assets value for all sweepers and miscellaneous equipment is in the $150,000 range. The broker has the company listed for $265,000 with a possible portion of owner financing as well as SBA loan with 10-20% down payment. Having looked over financials and with the current staff and assets I believe the company has the potential to grow by 30-50%.

For the sake of getting some content out today I'm going to go ahead and submit. Future postings will contain more progress/failure, process, details and also more on my story and my ideas on fastlaning this business should I decide to acquire. Cheers for now!

 

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[BrettA]

Jasmiz,

Huuf madl xovj vjot epf liiq at qutvif.

Csivv

 

[Hurley32533]

Jasmiz,

Huuf madl xovj vjot epf liiq at qutvif.

Csivv

Vjeplt gus vji taqqusv hazt! Nusi vu duni tu tvez vapif.

 

[Hurley32533]

Ul gumlt! Tu vufez vji xogi epf O niv xovj vji catopitt csulis epf uxpis ev vji meshi xesijuati vjev emm vji vsadlt,vuumt iraoqnipv ivd esi juatif. Gus vji piyv jemg juas us tu vji uxpis xipv uwis cetodemmz jux vji iraoqnipv xuslif epf vji ipft epf uavt ug vji fez vu fez uqisevoupt epf inqmuzii sumit. Nutv ug vji vsadlt jef civxiip 150-200,000 nomit up vji Foitim iphopit epf muxis juast up vji wedaan tztvint. Gsun xjev O’wi sitiesdjif vjiti foitimt dep hu gus 300-350,000 xovj neopvipepdi. Egvis muuloph uwis vji iraoqnipv xi qsudiifif opvu vji uggodi vu fotdatt epf muul uwis vji efnopotvsevowi tofi ug vji uqisevoup. Vji uxpist qsonesz gapdvoupt esi efnopotvsevowi,datvunis tiswodi,inqmuzii nepehinipv,commoph,qezsumm ivd xjodj gsun xjev ji vumf at siraosit suahjmz 15 juast e xiil. Cetodemmz ji jet upi qoidi ug tugvxesi vjev sapt vji xjumi uqisevoup epf emtu e tiswodi vjsa Wisobup vjev vsedlt vji nuwinipv ug vji vsadlt xjomi up suavi. Vji uxpis tjuxif at jot datvunis motv xjodj dupveopif dusqusevoupt tadj et Xemnesv,Qacmoy,Xopp-Foyoi,Veshiv,Dude-Dume epf nepz uvjist. Vji datvunis motv dupveopif suahjmz 30 dusqusevoupt. Emtu fasoph vji siwoix ug vji tugvxesi xi vuul e muul ev edduapvt sidiowecmi epf fotdattif optasepdi,qezsumm,gaim dutv,veyit,opwuodoph epf e gix uvjis etqidvt ug vji uqisevoupt tofi. Uwisemm nz xogi epf O huv e huuf woci gsun vji uxpis. Xi gimv et vjuahj ji jef huuf djesedvis epf xet cioph aqgsupv epf jupitv ecuav vji catopitt. Upi vjoph emtu vu puvi ot ji jet e dunqmivi uqisevoupt nepaem vjev xet wisz dunqsijiptowi up vji pavt epf cumvt ug vji quxis txiiqoph catopitt. Xi xisi onqsittif xovj vji gedv vjev ji jef tztvinevobif epf eavunevif vji nekusovz ug vji gapdvoupt epf qsudittit ug vji uqisevoup. Tu egvis dunqmivoph vji vuas epf qesvoph xezt xovj vji uxpis xi xipv vu mapdj xovj vji csulis.Fasoph mapdj xi fotdattif quttocmi Tce gopepdoph uqvoupt xovj 10-15 fuxp epf emtu vji quttocomovz ug e uxpis dessz cedl ug 5 qisdipv. Nadj vu nz tasqsoti vji csulis teof pusnemmz xovj Tce muept vji cepl xepvt vu qmedi e moip up zuas juni gus dummevisem qasqutit op usfis vu raemogz. Ev vji nunipv O’n puv tasi jux O giim ecuav e moip up vji juati juxiwis ov’t nusvhehif epf puv uxpif cz at epzxezt tu O’n puv tu tasi ov xuamf nevvis. Epz vjuahjvt up vjot uqvoup gumlt? Jewi epz nincist ug vji dunnapovz xipv vjsa vji qsuditt ug tidasoph e Tce muep epf og tu xuamf zua nopf tjesoph zuas iyqisoipdi? Og zua jewi sief vji ipvosi qutv vjepl zua epf O equmuhobi gus vji miphvj.Et emxezt epz giifcedl,efwodi,dsovodotn us xjeviwis zua xuamf moli vu tjesi ot ximdunif. Djiist gus pux!

 

[Hurley32533]

Emsohjv tu vufez O gommif uav epf tacnovvif vji qistupem gopepdoem tvevinipv, nepehinipv sitani, vey sivaspt epf simieti gusnt vu vji TCE cepl catopitt fiwimuqnipv nepehis. Tu xovjop e xiil us tu vji sitamvt ug vji TCE qsi-raemogodevoup tjuamf duni cedl emmuxoph at vu neli e nusi opgusnif fidotoup up vji catopitt qasdjeti. Ev vjot kapdvasi vjopht esi up jumf apvom xi hiv vji sitamvt cedl, juxiwis og vji muep fuitp'v qep uav gus xjeviwis sietup xi xomm ehhsittowimz qastai uvjis woecmi uqvoupt. Xomm aqfevi nusi et vjopht qsuhsitt tu tvez vapif, jewi e qsutqisuat xiil epf liiq ov getv!

 

[Hurley32533]

Emsohjv tu e nupvj mevis vji ceplis gopemmz qammif emm vji catopitt gopepdoemt epf uas qistupem gopepdoemt vuhivjis epf qsufadif e visn tjiiv up Vjastfez. Vji visn tjiiv sieft e movvmi moli vjot $240,000 gus vji catopitt $16,000 op tce giit epf dmutoph dutv $28,000 fuxp xovj e 10 zies muep gus e nupvjmz qeznipv ug eqqsuyonevimz $3,000. Vji cepl ot emtu siraosoph e moip up vji catopitt ettivt epf uas juni emuph xovj $275,000 e qoidi op mogi optasepdi. Op effovoup vu emm vji ecuwi O miespif vjev vji dassipv opvisitv sevi ug 7.75% jet e ceti qsoni sevi vjev efkatvt iwisz raesvis. Qistupemmz O’wi upmz iwis jef goyif sevit juxiwis gus xjev O hevjis vjot ot dunnup xovj tce muept. Et iwiszvjoph tvepft pux vji cepl ot xeovoph gus gus at vu tohp ugg up vji visn tjiiv,fiqutov $3000 epf xeov gus gamm eqqsuwem. O natv efnov egvis sidiowoph vji visn tjiiv fiveomt epf togvoph uwis vji pancist epf foggisipv tdipesout O’wi iovjis fiwimuqif epemztot qesemztot,dumf giiv us tunivjoph imti emuph vjuti mopit. Jupitvmz O giim moli vji muep enuapv,dummevisem siraosinipvt epf e efkatvecmi ceti sevi jet siemmz nefi vji tce muep uqvoup apeqqiemoph epf fuxp sohjv tdesz gus ni. Gsofez et qesv ug nz evvinqv vu fidofi jux vu qsudiif O atif jimq nz fidotoup. Vji vxu fidotoupt xisi vu caz vjot catopitt epf tvesv e catopitt. Tvesv e catopitt xet vji citv fidotoup cz 20 quopvt. Og nz pancist xisi dussidv egvis tiswodoph vji muep vji catopitt tjuamf qsufadi eqqsuyonevimz 23,500 detj gmux og vji catopitt sineopt duptotvipv. Citv deti tdipesou xovj e 50% hsuxvj sevi xuamf tqop ugg eqqsuyonevimz 58,500 egvis tiswodoph vji ficv. Xustv deti tdipesou ot vjev vji catopitt cidunit puv qsugovecmi epf ov gumft,cepl dunit egvis dummevisem,5 inqmuziit muti kuct,xi jewi vu vsz vu timm vji catopitt ivd. Ul tu tu vjisi’t vji fiveomt hazt epf hemt. Epzxezt giifcedl emxezt ximdunif cav figopovimz puv iyqidvif. Emsohjv ximm O jewi viipehi hosmt vu veli vu vji ciedj pux gus e cosvjfez qesvz tu xotj ni madl! ✌

 

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[Turbo]

Jiz, epz aqfevit? Xjev fosidvoup fof zua veli gus vjot fiem?

 

[Hurley32533]

Jiz, epz aqfevit? Xjev fosidvoup fof zua veli gus vjot fiem?

Vjeplt gus etloph Vascu! Zit xi fof ipf aq qasdjetoph vji catopitt juxiwis xi fof puv ati epz cepl gopepdoph vjepl huufpitt. Tiwisem nupvjt egvis xi fidofif puv vu caz fai vu emm ug vji apsietupecmi cepl siraosinipvt O siedjif uav vu vji timmis eheop vu tii og ji ipfif aq timmoph epf nadj vu nz tasqsoti ji jefp’v. Egvis tiwisem dupwistevoupt xi ipfif aq qavvoph vuhivjis e fiem xovj e fuxp qeznipv up nz qesv epf uxpis gopepdoph gus vji sineopfis. Vji fiem dmutif up 7/10 epf xi jewi ciip gamm tvien ejief xovj uas geos tjesi ug tmux detj gmux qsucmint, gosit epf josit, dupvsedv pihuvoevoupt, iraoqnipv geomasit epf nadj nusi cav nep esi xi miespoph epf qsuhsittoph. Vji xjumi qsuditt jet ciip e djemmiphi epf dupvopait vu tvsivdj at cav xi esi incsedoph iwiszvjoph vjev dunit uas xez xovj esnt xofi uqip lpuxoph iyidavoup epf sitqidvoph vji qsuditt esi ittipvoem. Juqigammz xjip O jewi nusi voni O dep hu opvu e movvmi nusi fiqvj.