Home – New Forums Money matters Looking at buying an existing business – need some figures Reply To: Looking at buying an existing business – need some figures

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bennos, post: 81678 wrote:
Hello again!

Further to this thread I’ve now got more info from the vendor.

Everything is in weekly.
Turnover 15,000
CoG 3,500
Wages 3,500
Rent 2,500
Net Profit 4,500

I’ve visited the site several times and seen their invoices, so I believe in the CoG, rent and wages figures. Though more in depth attention is needed to verify them.

The stated net profit is 4,500. That leaves 1,000 per week for ‘other’ expenses. Do these numbers look realistic? What else (major expenses) have I missed?

I expect you’ve signed some form of NDA and broadcasting on here might not be the most prudent thing to do.

You seem to have totally missed all the expenses except rent – as has been said on this thread already a detailed P&L would enable you to see all the expenses.

An observation – both GP and Net percentages seem awfully high?

Have an excellent accountant with a broking licence if you wanted someone to guide you through this properly.