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Business purchase

Looking to buy a business that I have worked in for over 10years and
was looking for some answers. It is a well known name for about 50
years here in Nevada only, and does about 650k to 700k with custom
being 80%, repairs, appraisals, and retail sales. We had bounced a
offer around 500k but will go up to 650k or 700k I would think when
it comes right down to it, and with inventory around 150k. What would
I be looking at with a loan amount. I know the SBA is like 10% of the
amount needed? Just looking to see if anyone else has done this and
any details they would like to share.

Is the owner going to carry the note or does he want you to pay all
at once, also if you get a bank loan will their be any money left to
pay yourself after you pay the bank every month. The interst on a
loan that size could be huge. My brother was going to buy into a bar
and the owner was willing to get the loan in the bars name using the
property as collateral then taking all the money and leaving my
brother to pay back the loan it was at a much lower interst rate
than trying to get a regular loan, plus alot easier to get. Does the
store own the building if not is there a rock solid lease. I am not
sure if banks will lend money based on inventory here in tucson I
have seen stores try to do that but the banks wanted realistate they
would not accept jewelery as colateral. I wish I knew more about
this but this is just stuff that I have experienced. good luck Kevin

Stop! You’re paying way too much. It isn’t worth that much no matter
what the owner thinks. It will take you way too long to pay back
what you will borrow. Think about offering to buy the inventory plus
maybe 100k for goodwill. Get the owner to take back the note. It’s
always easier to borrow the money that way.

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140

It sounds like a great opportunity, I would only suggest looking at
the total net profit not the gross sales. And, Who makes the big
sales, will they still be there? Have you meet with an Accountant?,
buy one diner at the nicest place in town.



Are the figures you quoted gross or net? How many employees?
Overhead? Expenditures such as equipment, disposables, cases,
security, insurance, phone, utilities, workmans comp, TAXES. When you
back out every expense and find your profit is as much as you make
working for that person without the brain damage you might want to
reconsider giving them $500,000 or more You could put together your
own new store for that and have a Mac Daddy store front. His
customers may not be as loyal to you as they are to them. Basically
you are paying big money for his good will. If it was good. Just some
points to ponder.

J Morley Goldsmith/Laserwelding

Hi Britten,

When I read this, the first thing that came to mind was the quantity
of inventory you’re buying. If any of this inventory is more than 6
months old, I’d be a little careful. You should be turning your
inventory twice a year otherwise you have money locked up in useless
pieces. If this is like any other custom shop you probably have
several pieces that have been sitting there for years. You don’t
want to take on this dead weight. I would suggest backing these
pieces out of the deal or purchasing these at a very heavy discount.
(you might be able to take them apart and use them in something more

My two cents,

    offer around 500k but will go up to 650k or 700k I would think

Insufficient data. We don’t know what the assets are much less the
net owner income and even further less whether the business is
actually profitable (from an owner perspective, not an IRS
perspective). A few weeks ago I offered to send free info on business
buying or selling to anyone who privately sent me their mail address.
That offer is still good (to make sure your e-mail doesn’t get lost
in spam access my web site and use the e-mail
links there). The SBA (and moreso the bank that will actually make
the loan) will want you to do a big pile of paperwork to show how you
will pay the loan back. For starters you’ll need the last 3 years of
the current owner’s IRS filings (I would hope you’ve looked these
over with an accountant before making any offer). As others have
noted your best bet may be getting the seller to hold the note. Good

James E. White
Inventor, Marketer, and Author of “Will It Sell? How to Determine If
Your Invention Is Profitably Marketable (Before Wasting Money on a
Patent)” Info Sites:,

Well I am waiting to read some financials and additional P&L’s. I
have apprenticed under the owner for 12 years, and the store it self
has been around for 40 so it is very well established. The number
game will be interesting to see what pan’s out more lucrative, buy
out, or startup with little money (being my own cash, around 30k for
a SBA or investors to put up extra) and build it up from the ground.
Would love to hear opinions, and forecasts on what you would do, have
done, or would like to do in a startup business.

Dear Orchidians, We want to thank you for your responses in regards
to us selling our business. Like we said we have a business that
imports and wholesales Tahitian black pearls. We have customers in
11 states, from Fla. to NY. We had a number of responses, some
serious, most just wanting to know the price. The business is debt
free and easy to relocate as we are home based. Included is a stock
of pearls (approx. 500) of all categories and shapes. In 2003 we
grossed just under $100,000 and this was selling only loose
Tahitian black pearls. Also included are our contacts in Tahiti. Our
customer list has been well researched by my wife and I.

The reason for us selling our company is because of a business offer
in Europe which we plan to take. We hate to see our company die and
are open to offers.

Thanks again