Setting the value of a business

[Spike89]

2. Thanks!

There are, as in any business, a ton of variables. Fortunately for us, we're in this particular business already. In fact, my wife worked for the owner about 10 years ago. There is a ton of potential, even in a stagnant economy. In short, the guy has made the classic mistake of waiting a couple years too long after he decided to retire. He hasn't been interested in growth at all in the past 3-5 years, he's simply been slowly semi-liquidating the business and half-heartedly looking for a buyer.

There is international exposure, but frankly, marketing has been so neglected for so long that there is so much "low hanging fruit" in the domestic market that I'll probably just maintain the contacts outside the US until I've got sales here closer to optimized.

You're absolutely right about the financing...he knows the most attractive thing about the deal is that it is almost no cash down. We really are the only potential buyers and he's on a tight deadline.