Update on buying shop back

[yellowgirl]

*I've got my shop!!* Post #33
Need help with the name now! Post #36


Hi everyone

I have an update from my previous thread about wanting to buy back my old pet food shop ...
I think I want my shop back

The owner rang me this afternoon to tell me that they'd had enough and were getting rid of the shop asap. He said that as it hasn't sold, they are going to liquidate it. He said the liquidation price comes out to $15,000 so if I'm still interested I can buy it for that price.

I am still interested in buying it but doubt that I'll be paying that much. My savvy friend is coming with me to look at the shop and talk to the owner tomorrow afternoon. Among other things my friend has suggested just waiting, buying the fittings as they are sold off, then renting the vacant shop. I'd rather be able to buy it back with the same business name, etc, but that is one of the options on the list.

I don't like to feel like a predator waiting to move in on the kill, but I guess it is what it is, they've run out of options and want out, and I want back in but at the lowest possible price (it's going to cost a bomb to get it re-stocked and re-fitted).

Any advice or suggestions before our meeting tomorrow?

Cheers,
Jo

[peppie]

I was watching your previous post out of interest, but I did not reply then.

First, you should not feel guilty that they bought a going concern, botched it and now have to bale out. I am not a mean type by any stretch, but you cannot take on someone elses problem. You can feel sympathy, even empathy but don't feel guilty. In fact, you are now the only person who can HELP them, so look at it that way.

Second, if you really believe it is not worth $15,000 to you then don't be afraid to say so. Also, I would go to this meeting 1/looking like I wasn't particularly interested 2/introduce my friend as being here because I just want someone elses opinion and 3/have the friend take on a very matter of fact/realistic sort of stance and simply state what he/she (and you) think it is really worth.

In the end all you are doing is making a realistic offer of what you think it's worth and what you want to pay. You can't take on board anything to do with what they may be loosing out on the deal. Besides which, you probably will never know what if anything they have lost.

If they don't want to accept a realistic offer at this late stage then you have done your best and you wait for the sell off. I know it's a hard thing to say and you can feel for them, but they are where they are now and you can't fix their problem for them.

[FS Concierge]

Hi Jo,
Thanks so much for the update on your circumstances... I'm sure I wasn't the only one who was enthralled by your "novel" a month or so ago.

I think back then the selling price was around $30k, so if the current owners are now offering it to you for $15k, it sounds like you definitely did the right thing to wait and play hard to get.

For my own 2 cents worth, I am with Peppie - is it worth $15k to you? And taking a step back - would it be worth $15k to anyone other than you? If this hadn't been your business before, how much would you value it at right now?

Whatever the outcome, we all wish you the best of luck, and are standing by for the next exciting instalment!

Let us know how you get on!
Jayne

[The Internet Bloke]

Hi,

If there is no goodwill associated with the shop, then the value would be just the second hand sale value of the contents and fittings.

Other factors that could increase the price you would pay are:
- The existing business name and yellow pages listing
- Value of any website, client contact listing
- Any benefits to you of just walking in without having to set everything up again.

From a brief glance at your previous post, it would appear that your old clients - and lots of new ones - would flock back as soon as you took over the business again.

It's unfortunate the the people selling the business are going to lose money, but you can not be responsible for the way they conducted the business.

cheers, Eric G.

[yellowgirl]

Hi Paul, Jayne and Eric

Thank you for your replies.

Paul, I must be on the right track, I've got your 1,2 & 3 suggestions in motion already Thank you for helping to set me straight on the reality of the situation... I didn't do this to them, they got themselves in into this. It's very unfortunate, but I have to remove myself from that for the moment.

Jayne, excellent advice!... how much would the shop be worth to someone else? Brilliant! ... and yet so simple.. lol!
Glad you enjoyed the first manuscript... that was the short version, haha!

Eric, thank you. The chap was kind of using the term 'liquidation' as if I might lose my only chance of getting the shop back forever if I didn't buy it immediately for his 'liquidation price'. You're right about the value being 'just the second hand sale value of the contents and fittings.' Kind of like a big garage sale really. It's only worth what someone is willing to pay for it.



It's going to be really interesting to see my friend's reaction tomorrow, he hasn't seen the shop since I sold it two years ago. I'm surprisingly calm, I'm basically going to step back and let my friend do all the work.. hehe.

Stay tuned for the next exciting episode!!.. lol! I'll update tomorrow after our meeting.

Thanks again all,
Cheers,
Jo

[Burgo]

Good luck with this Jo, you realise you have the forum here supporting you, fingers crossed and everything.

[Jason McIntosh]

Hi Jo,

I’ve just read your post and have not seen your original message. As you are meeting today, I would like to comment before I race out the door.

Your opponent has volunteered some valuable information.

1) There are no other potential buyers
2) They are leaving the business one way or another

These people are not good negotiators.

I won’t offer much advice, as I have not had time to consider. However, I would say go to the meeting confident within yourself. You certainly hold the upper hand.

It is also a good idea not to make any on the spot decisions – you don’t need to. Making them wait for your offer will likely work in your favour.

Liquidating a business is not an option many people would embrace. They have to get rid of stock, make staff redundant, deal with the lease and make good clauses, along a raft of other things. You would have to think they would probably jump at any alternative you offer them.

Good luck!

Jason

[LeelaCosgrove]

Hey Jo,

As said above - don't feel like a predator. You tried to do the right thing in a realistic way (and you've been proven right by the 50% drop in price - no one else thought it was worth $30k either) - and you were rebuffed. All you've done is let them dig their own grave.

I would add that where possible, you want all negotiations to be win-win. If the price is too high, what can you do to make the current owners feel better about their situation (note: this is not a case of "it's your responsibility because you made them feel bad in the first place" - it's a case of "if you want to get the best out of any situation do everything in your power to make other people feel good")?

I certainly don't mean pay more than it's worth - but can you find another way to sweeten the deal? If you can't think of anything, I always find the best option is to ASK ...

What, other than money, is important to them right now? What else is going on in their lives? What are their priorities right now? And can you help them in those areas, or can you put them in touch with someone who can?

Don't ASSUME it's always about money, because it's not ...

[yellowgirl]

Hi all
The meeting isn't till 3.30 so I'm filling in a bit of time and reading other posts.

Burgo, thank you so much for the support!

Jason, excellent advice, thank you! I'm going to get my friend Chris to read all these replies before we go!

Leela, thank you also. I had been thinking of ways I might make things a little easier for them. As I don't want or need some of the items they are selling (delivery van, computer, mincer, fax machine, etc). I was going to offer to store the items on the property (there's a car park and big shed out the back) for a set number of months, so if they can still sell things off privately if they'd like to.

I'm still very calm. I'm so glad I didn't go straight over for a meeting yesterday. I definitely needed this extra time to put a little perspective on the situation and get some input from here first!!

Thanks again everyone!
Cheers,
Jo

[Numberz]

Originally Posted by yellowgirl

I'd rather be able to buy it back with the same business name, etc, but that is one of the options on the list.

Hi Jo, I'll put my 2 cents in as well as I has previously read your saga, though didn't post.

Given that the owners have effectively run the business into the ground it's probably better to start afresh - with a new name etc. My recommendation, going into the meeting, would be to have the attitude that if it doesn't work for you, then you're quite happy to walk away and open elsewhere.

Good Luck!
Bruce