is this a viable business

[justin131]

i was in contact recently with a guy i used to work for looking to see if he wanted to start back into tree work. we talked about his company and after a log conversation cane to the conclusion that he wanted nothing to do with it at all and wanted to get rid of it.

i asked him what price he'd take for it and after going through what he had came up with a figure of 20k.

the equipment is only worth about 10k the other 10 is for the website and name.

the company has not been operational since february but he gets two to three enquires a day.

my main concern would be that by not taking on work or even answering these enquires people will think that the company is no longer operational (which it isn't) and this may have damaged it's reputation.

i have someone who might be interested in investing with me and if he did i really wouldn't want to let him down.

is there still a viable business there?

cheers in advance for any advice

[Steve Bullman]

A website and name that has only been operational for 8 months is not worth anything like 10k in my opinion, at least not in this line of work.

[justin131]

it been operational 4 years but no enquires have been followed up on for 8 month

[Steve Bullman]

ok sorry i misread

[felixthelogchopper]

Unless they are ill or retiring, not many people want to sell a good business.

[justin131]

he's retiring has a bad back a new born and a couple other business's

[peatff]

Offer him the money for the equipment and make your own name and website. Has he any documented enquiries evidence, out of 2 or 3 a day you might still not get any follow up and if he has not replied to any of them they will be wary if any correspondence turns up out of the blue, I would anyway. Is he as lax with the other two businesses ?

[Logrod]

Do you need the equipment? If not it doesn't look as if he's any competition so I certainly wouldn't spend on the name and website - goodwill doesn't last long - and only buy any kit that you really need. (Says the man sat having a coffee and browsing tool porn sites!)

[aspenarb]

You obviously see some value in the deal or you would have dismissed it. I would go for it on the understanding that he accepts two hundred and fifty quid a week for two years, first year paying him for the kit and the second year for the good will. Shove in a proviso that states he gets no second year payments if the phone does not ring off the hook,worst case scenario is you have bought some kit on interest free credit.

 

Bob

 

edit: A mate of mine bought a ready to go up and running are business for 60k and had to carry that monkey on his back for five years, he regrets it.

Edited September 7, 2015 by aspenarb

[justin131]

given me alot to think about, it may not be a good investment but i do hate to see the business go to wast