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I am a qualified IT support technician with a detailed & broad CV, experience in may areas & including some impressive companies. I have built this over 7 years & now, @ 23 am facing a tough decision.

My passion is bikes. & with a fellow school friend have enjoyed 6 years of road & track. He is an engineer by trade but for the past couple of years has been painting/decorating & general handyman. We both enjoy mechanics, doing all the work we have the facilities to do ourselves on both bikes & cars.

The work we can not undertake due to the need of specialist equipment, has been dealt with by friends/contacts in properly equiped workshops. We now have the opertunity to take over one of these business'.

They are the only local motorcycle service/repair workshop of its kind & recently made progress in online ordering of parts & accessories. The owner has lost the motivation/drive & is looking to sell-up & buy a cottage in Scotland!

He has had a valuation report carried out & is looking to sell complete with all stock/equipment/van but does not want to sell it to some-one he does not trust (as the business will be keeping the name & hopefully the customers!) He has also agreed in keeping a 'supervisory' role in the business for X months (to be confirmed) to oversee a smooth transition.

I guess my question is what advice can NE1 give to taking over a business? I guess its easier than starting from scratch...?

All advice greatly recieved.
M.

P.S We would also be looking into providing services to cars!:D
 

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You only live once, give it a shot, we did and I haven't looked back :D

Every business has its ups and downs we are really quiet winter/spring but the rest of the months make up for it, oh and you can take as many holidays as you want without the boss whinging on ;)
 

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Dark Destroyer said:
I am a qualified IT support technician with a detailed & broad CV, experience in may areas & including some impressive companies. I have built this over 7 years & now, @ 23 am facing a tough decision.

My passion is bikes. & with a fellow school friend have enjoyed 6 years of road & track. He is an engineer by trade but for the past couple of years has been painting/decorating & general handyman. We both enjoy mechanics, doing all the work we have the facilities to do ourselves on both bikes & cars.

The work we can not undertake due to the need of specialist equipment, has been dealt with by friends/contacts in properly equiped workshops. We now have the opertunity to take over one of these business'.

They are the only local motorcycle service/repair workshop of its kind & recently made progress in online ordering of parts & accessories. The owner has lost the motivation/drive & is looking to sell-up & buy a cottage in Scotland!

He has had a valuation report carried out & is looking to sell complete with all stock/equipment/van but does not want to sell it to some-one he does not trust (as the business will be keeping the name & hopefully the customers!) He has also agreed in keeping a 'supervisory' role in the business for X months (to be confirmed) to oversee a smooth transition.

I guess my question is what advice can NE1 give to taking over a business? I guess its easier than starting from scratch...?

All advice greatly recieved.
M.

P.S We would also be looking into providing services to cars!:D
first of all u have to be their for a month or so and see how many customers he gets in and is he in profit and to start off with your mate can it afford your wages straight away etc etc

it should at least give u the same as what u are getting or more .

and then get a company a ltd one and make an offer and buy the business aff him, that way any debts owed by him to anyone else those guys wont come after u.

and get a lease if the property aint his and get it through the ltd company, u may have to pay a deposit but its worth it, if it dont work out at least they cant take u to court personally

and have some funds mate, it aint good having a business and not many customers and funds to buy in stock
 

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Tough decisions at 23? Bit early, you should be more bothered about having a laugh, getting off your face and chasing totty at that age for chrissake :D

Seriously though, moses has made some good points there about customers and profits. Have a look at his books, bank accounts and tax returns - see what his income, expenses and cashflow are like and also whether these have been going up or down in the last few years.

Ask for some references from customers to see if they rate the service they have got and see if he gets a decent amount of repeat business.

Have a look at what you are buying - is it the assets of the business or the shares in a limited company? If its shares, get a decent lawyer to put some decent warranty and indemnity clauses in to cover yourself as when you buy the company you take on all its liabilities as well as its assets. If its assets then like moses says, think about setting up a limited company and having that buy the assets to limit your liability. If there's any doubts about what you're buying then you might want to hold some back in escrow for a period, or try to pay him partly on a deferred basis depending on (say) revenues over the first year you own it.

Also, I reckon you need to have an agreement about exactly what his 'supervisory' role is and how much he gets for his time - if you want him just advising/helping rather than making decisions then make sure its agreed up front to avoid friction.

HTH,
Steve.
 

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Steve C said:
Tough decisions at 23? Bit early, you should be more bothered about having a laugh, getting off your face and chasing totty at that age for chrissake :D

I would say get as much advise as you can, and don't worry about your age, people may at first think you are young, but if you are serious and committed, they will soon see this and take you seriously. I took on a very large loan at 23 to buy my business, At first people said I had no chance, I was mad,and the business (farming) would not survive, 4 years later and I've never looked back.
Admittedly, things havn't ended up much like the initial plan, but I don't regret taking the chance, and enjoy the work I do now

Stu
 

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I do quite a bit of merger and acquistion work in my business.

there is a whole industry built round sizing up businesses big and small and the process is called Due diligence. Try searching on t'internet for some checklists of the things to look out for, but failing that pm me your email address and ill pass on a check list that ive developed at work, but it will be a week or so b4 i can get it for you.

Andy
 

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Makes said:
oh and you can take as many holidays as you want without the boss whinging on ;)
Very true Jules. You just get the bank manager whinging on instead :rolleyes: :crackup:
 

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The normal thing is to involve a Chatered accountant.

The term is due diligence

As been said you can enter in to a contract to buy, the final money paid is based on how well the bussiness does.

Just make sure you use a chartered acountant, these dont normally fiddle. He will useually advise you of a good solisiter to set it up.

I set my own thing up when I was 23 & I coundent spell then, 25 years ago

GO FOR IT
 
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