Who to go to for New / Existing Business Buy-In?

[asphaltgambler]

I'm looking to get out of the auto business (in the near future) and into.........................anything else. I need someone professional that would give sound and unbiased advice as to what business(s) and direction to pursue.

In the past I have spoken to business brokers for direction but that's like asking which car to buy from the used car salesguy. I once spoke to a CPA that had sound info, but I'm also not sure if that is the way to go since that is not his main deal.

[Don Plumley]

I'm happy to provide some business strategy advice, pro bono to Pelicans. PM me if you want my professional CV, etc.

[berettafan]

Asphalt you're right to be leary of brokers.

I'm a CPA in Md. and will be happy to answer specific q's.

The deal w/ CPA's in public practice is that they tend to see a LOT of different businesses and, over time, begin to get an idea of what works and what doesn't.

PM'ing you with my email.

[LeeH]

I bought, grew, sold an existing business and feel lucky to have had a very positive outcome. I've been looking off and on for another to do the same with. After reviewing many broker listings I've come to the conclusion that they all have a "gotcha." The challenge is to find the gotcha before you sign on the dotted line and determine what, if anything you can do about it. If it's a simple business that makes a lot of money it's either very expensive, or not for sale.

One business that I looked at was a warehousing company. Seemed like a great business. They just held stuff (mostly custom furniture) until people needed it. Pretty simple, right? Turns out every "employee" was being paid as an independent contractor. Seemed like a longshot that these guys would stay on if I started taking out taxes.

Another I looked at was a Porsche parts place. Seemed like a great business until I found out it was a one man show. The owner promised he could teach me everything I needed to know in a couple of weeks. Uh... yeah, right. The value to that business was all tied up in one man's head. He still owns it many years later.

Most recently I looked at a franchise auto repair shop. They were asking $200K and claimed a net of $90K. Seemed like a good deal. After I started looking into it I was soon told that it only had a net of $40K. The new price after this realization? Still $200K(?).

I think the real windfall comes if you can start something from scratch and then sell if a few years later. The trick is to build a business that's actually makes money. I'm still looking right now, but have started looking at jobs instead of businesses.

[GDSOB]

Good advise from Lee.

Due Diligence pays. Most of the small businesses for sale are incredibly overpriced. If you do jump in, make sure it has a good return without you putting in 70 hours a week. Many of these situations you get to buy yourself a low paying job and a ton of debt.

I'm just sayin'

[asphaltgambler]

From the few businesse possibilties that I have looked into I definitely get the feeling that no one can really define:

A) Actual gross sales and Net profit

B) Where in the growth cycle that business model is at that time


One thing I seem to have realized is I have no interest in:

A) Franchises

B) Any business resturant related

C) Any business that requires highly skiled blue-collar workers = ( small pool of potential qualified people to draw from)


Any thoughts so far on my short "no interest" list ?

Thanks!

[berettafan]

From the few businesse possibilties that I have looked into I definitely get the feeling that no one can really define:

A) Actual gross sales and Net profit

Tax returns provide this. At least 3 years. And they need to be reviewed, do not just take them for fact.

B) Where in the growth cycle that business model is at that time

Peak or downswing; that is why it's for sale.

One thing I seem to have realized is I have no interest in:

A) Franchises

Some are just a 'job' some offer equity growth. Lots of people out there getting rich with franchises. They are proven concepts (more or less) and you have a great point of reference. People go to franchises because they are comfortable. It's why they eat at *****ty places like Olive Garden. It's why they call big name real estate co's. Lots of b.s. in the franchise racket however.

B) Any business resturant related

Linen svcs, food distribution, trash svcs, etc. Lots of good opportunities in the service world. Agree on keeping your money away from non-franchise restaurants however. Classic way to make a small fortune out of a big one.

C) Any business that requires highly skiled blue-collar workers = ( small pool of potential qualified people to draw from)

Sounds smart to me!

[asphaltgambler]

From my view point. I am a veteran auto technician, BMW, VW, Audi and Porsche as of the last 6 years. I have almost 30 years experience of every facet in the auto service industry as well. I did own my own shop back in the mid-80's and was sucsessful.

I see the auto service industry business model about where buggy whips were by the mid 1930's. Even though I have a passion and it's in my blood, I see this business as leveled out.

I want to move on and have some control over my financial destiny with-out the daily physical stress. I'm 48