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Hopefully this post doesn't get too long, but after reading Laura Butler's post about selling her business, I need some advice on the other side of that equation. I just found out early this week that a local shop here came up for sale. It was listed in the business opportunity section of the paper with just a cell # in the ad. My wife called Monday and from the conversation, we have figured out which shop it is. The business is probably 75% screen printing, which is something we have been thinking about getting into. They do some signs and vehicle lettering, but not much. He said the reason he's going out of business is that he lost his shop manager and doesn't have time to run it. Not sure if that's 100% true or not, but....
What's the best way to determine if the price is fair? It includes all screen printing equipment, 24" plotter, customer list, and some other miscellaneous equipment which I need to call and get more in depth info about. He owns the building, and offered that as well, or we can lease it. But, what kind of value can you put on a list of names? I know the work isn't just local, it's spread out all over the country. I just want to make sure it's worth the asking price, or make sure I have leverage to justify a lesser offer.
-------------------- Mike Murray Murray Signs Freeport IL Posts: 193 | From: Freeport IL USA | Registered: May 1999
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i personally wouldn't pay much for a list of names. i would see what condition the eqpmt is in and price accordingly. i would want to buy the real estate because a business without a home is almost useless. look at the books and see what it grosses and make sure you can afford to service the debt and make a living.
-------------------- Karyn Bush Simply Not Ordinary, LLC Bartlett, NH 603-383-9955 www.snosigns.com info@snosigns.com Posts: 3516 | From: Bartlett, NH USA | Registered: Jan 2001
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